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CSE brokers and officials depose before JPC

A host of Calcutta Stock Exchange brokers, officials and members of the immediate past committee on Tuesday deposed before the Joint Parliamentary Committee probing the multi-billion stocks scam involving big bull Ketan Parekh and Gujarat-based Madhavpura Bank.

The 30-member JPC is in Calcutta as part of its efforts to acquire first hand information about the functioning of stock exchanges and to inquire into the reasons leading to the huge payment crisis at CSE in early March.

Sources at the bourse said the JPC team questioned members of the erstwhile committee on what prompted them to resign immediately after the crisis broke out.

According to former CSE president Kamal Parekh they had resigned in anticipation that Sebi might dismantle the board, the sources said.

The newly formed Calcutta Stock Exchange Brokers' Association, a forum of member brokers, also deposed before the team.

The association, the sources said, made a presentation before the JPC and alleged that all erstwhile committee members were aware about the impending payment crisis in March but did nothing to avert it.

None of the members or officials, who deposed before the committee, were willing to disclose what transpired, but a section of agitated brokers said the deposition was a farce and nothing would emerge out of it.

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