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I wanted to make Indian market globally attractive: Ketan

Big Bull Ketan Parekh on Thursday confessed to having drawn to the tune of Rs 8.88 billion from Madhavpura Mercantile Co-operative Bank for stock investments owing to which bank went into the red.

Deposing before the Joint Parliamentary Committee, probing the stock scam, the main player, Parekh said his borrowing far exceeded his limit of Rs 2.05 billion and he was unable to repay the amount as he fell into a 'vicious cycle' because of the payment crisis in the stock market.

Parekh, who gave a 100-page detailed statement to JPC, claimed that whatever he did was in the interest of the nation and make Indian bourses globally attractive.

He said the rise in the indices in the Indian stock market during the beginning of last year was in line with the international trend.

Parekh, meanwhile, denied that his companies were involved in circular trading which resulted in a steep rise in the stock prices.

He said he had no intention of manipulating or committing irregularities like circular trading or short sales.

The deposition was incomplete and Parekh would be summoned again to be questioned about his bank dealings. The accused did not have a clear cut reply to a question on his influence over the investment decisions of his 23 group companies, Tripathi said.

The broker was also questioned about the number of transactions between his own companies which 'appeared to be very unnatural' to the Securities and Exchange Board of India.

Briefing reporters after a three hour hearing, JPC chairman Prakash Mani Tripathi said Parekh told the committee that Big Bull 'was trying to see that Indian (stock) market which is the 5th largest in the world makes an impact in the world market where investment can be profitable'.

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