Parekh trades due to regulatory oversight: Sucheta Dalal

Excerpts from Your World at 10 on CNBC-TV18 Watch the full show »

  Q: What does this say of our ability to weed out Ketan Parekh from all market operations? It seems to me like for years to come we might see his name allegedly crop up every now and then?

A: It is worse than that. It is he and there have been others. Infact, there are newer ones who are getting inspiration from him. What do you make of Nirmal Kotecha, what do you make of two-three others who have been caught in various cases like Atlanta and other such, Sebi has investigated in the past even those haven't been put away. So, they are going to keep cropping up especially when the market revives, they are going to crop up again unless this pattern is repeated and the investigation is as complete as this one.  

Q: In your opinion, the one myth that this burst for sure is the presence of the retail investor in this market place?

A: Exactly, look at all these three cases and look at the number of entities who seem to exist only to create fake volumes and synchronized trades. Sebi needs to do an investigation to find out how many brokerage firms actually do their business based on investors whether it is retail investors or retail speculators and how many of them exist for large operators as some kind of satellites and fronts and that is all their business is about.

Q: This is actually the first trigger or the alert, the fact that you are seeing so many multiple instances of synchronized trades?

A: Exactly, 226 or something in Pyramid Saimira and another 26 over here.  So, that is a large number.