Bad news for Gitanjali, PNB, OBC: Few scam-related stocks regain lost glory
From the so-called Ketan
Parekh (K-10) stocks to Unitech and DB Realty, scam-tainted stocks have fallen
by 90 per cent or more from their all-time highs
LATEST
NEWS: Nearly a dozen companies that have been named
in various scams, frauds or price rigging at the bourses in over two decades
have lost over 90 per cent of their market value from their all-time high
levels, data show.
For instance, sample the stocks
related to Ketan Parekh, the former stock broker from Mumbai convicted in 2008
for his involvement in the Indian stock market manipulation scam in late 1998
to 2001. Some of the famous Ketan Parekh (K-10) stocks like Himachal Futuristic
Communication (HFCL), GTL and Pentamedia Graphics – and Mukta Arts, Tips
industries and Pritish Nandy Communications, in which Ketan Parekh had a huge
exposure – are currently trading up to 99 per cent lower than their peak levels
recorded in 2000.
During the 1998-2001 period, Parekh
artificially rigged prices of select stocks (informally referred to as K-10
stocks), using large sums of money borrowed from banks, including Gujarat-based
Madhavpura Mercantile Co-operative Bank, where he was a director.
Similarly, Unitech and DB Realty,
whose promoters were named in the 2G telecom spectrum scam of 2009, have lost
over 85 per cent of their market value from peak levels. This was even as a
special Central Bureau of Investigation (CBI) court acquitted all accused in
the 2G telecom spectrum scam in December 2017.
After the CBI special court’s
decision, DB Realty zoomed 130 per cent from Rs 36.45 on December 20, to Rs
83.80 on January 10, 2018. The stock is currently trading at Rs 58.15 on the BSE.
It had hit an all-time high of Rs 540 on March 31, 2010, in intra-day trading.
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