Had this in my archive : same kind URL: http://www.blonnet.com/2002/01/04/stories/2002010401980300.htm NEW DELHI, Jan. 3 STOCK broker, Mr Ketan Parekh, who is in the centre of the 2001 stock scam, has denied that his broking firms were involved in circular trading. However, he was reported to have admitted to the Joint Parliamentary Committee (JPC) that his firms had simultaneously bought and sold shares of the same companies. In a written deposition before the JPC here on Thursday, Mr Ketan Parekh denied that he had any intention of manipulating or committing irregularities like circular trading and short sales. The rise in stock prices during the early part of 2001 was in tune with the global trends and the large-scale purchase and sale of shares were done in good faith and ``in the interest of the nation''. The aim was to make the Indian stock markets attractive and to make an impact in the global market, where investment could be profitable, Mr Parekh told the committee, according to the JPC Chairman, Mr Prakash Mani Tripathi. The primary charges against Mr Parekh relate to market manipulation. He is alleged to have developed a nexus with the promoters of some prominent companies for creating an artificial market in certain scrips, which amount to market manipulation. Mr Parekh also admitted that he had overdrawn Rs 888 crore from the Madhavpura Cooperative Bank. His borrowing had far exceeded his limit of Rs 205 crore and he was unable to repay the amount, as he was trapped in a vicious cycle due to the payment crisis in the market.
We tell every new trader to stay away from the after-hours market anyway...and this is just another reason to support our decades old philosophy. I usually give the example of Institutional Trading from the old days....and this shows that even small time players can take advantage of those foolish enough to take part. Don
Not so sure the stuff that goes on INTRADAY isn't the same scam , only done on higher volume and with more participants.
Don, What is your take on the difference between this case and "the flipper" in the Eurex? That happens during trading hours but imho it is manipulation too and is also creating a false picture of the market. (See the post by Quiet1 on: http://www.elitetrader.com/vb/showthread.php?s=&threadid=28954&perpage=6&pagenumber=20 ) Thanks Marinus