Business Ethics and Corporate Governance, Second Edition

CASE STUDY: KETAN PLAYED AROUND WITH OTHERS’ MONEY

(This case is based on print and electronic reports and is meant for classroom discussion only. The author has no intention to tarnish the reputations of the corporates or the individuals.)

Ketan Parikh is a notorious name in the annals of India’s securities market. He used an ingenious technique to get public funds for his price-rigging operations. As the Indian Express reported, Ketan Parekh had close to INR 2,000 crore to play around with during the month prior to his arrest in 2001. Securities and Exchange Board of India’s (SEBI) preliminary enquiry unearthed the fact that Ketan got around INR 670 crore from corporations such as Zee and HFCL whose shares he was ramping up. Both Zee and HFCL ...