The stock market regulatory has, however, recommended action against entities of stock brokers Sanjay Khemani, DK Poddar, Ketan Parekh and Dinesh Singhania for fraudulent and unfair practices.
According to the investigation report, the investment and trading concerns of the Essel group had given Rs 706.40 crores to Ketan Parekh entities. "The Essel group while providing inter-corporate deposits (ICDs) took a firm undertaking from the KP group that the KP group would not use the money provided by the Essel Group to make purchase of shares of ZTL and Essel Packaging Limited, the listed companies of Essel group," Sebi has stated in its final report. Details submitted by Essel group companies notably Briggs Trading Company Private Limited, Churu Trading Company Pvt Limited, Prajatma Trading Company Private Limited, Ganjam Trading Co Pvt Limited and premier Finance & Trading Limited showed that these entities did not deal in in the shares of ZTL. "Thus there are no indications so far of the involvement of these promoter companies in jacking up the price of ZTL," the Sebi report states. Sebi has issued show cause notices to 22 stockbroking entities.
These include Triumph Securities Limited, NH Securities Limited, Classic Share & Stock Broking Services Limited, Triumph International Finance India Limited, Dinesh Kumar Singhania & Co Doe Jones Investments & Consultants Pvt Limited, Arihant Exim Scrip Pvt Ltd, Tripoli Consultancy Services Pvt Ltd, Panther Fincap and Management Services Ltd, Luminant Investments Ltd, Chitrkut Computers Pvt Ltd, Panther Investrade Ltd, Nakshatra Software Limited Goldfish Computers Pvt Ltd, Saimangal Investrade Ltd. Notices have also been issued to AK Poddar, Prema Poddar, Raj Kumar Poddar, Ratan Lal Poddar, Sanjay Khemani and N Khemani.