Agencies

New Delhi, Apr 1: The Bombay High Court on Tuesday sentenced stock brokers Ketan Parekh and Hiten Dalal along with five others to one year rigorous imprisonment each, while two other accused were sentenced to six months imprisonment in the 1992 security scam case.

However, their bails will continue till July 31, Justice V M Kanade of special court (For trial of Offences Relating to Transactions in Securities Act) held.

Parekh along with others including Canfina officials were convicted on March 14 as the court held that they entered into a criminal conspiracy to "siphon off Rs 47 crore".

Bangalore-based Canbank Financial Services (subsidiary of Canara Bank) was the victim of this scam.

Prosecution's case was that money belonging to Canfina were transferred to accounts with Canbank Mutual Fund in Mumbai by default, but instead of returning the money to Canfina, CBMF diverted it to the accounts of Parkeh and other stock-brokers.

These fraudulent transactions took place in October 1991 and January 1992. Total loss to Canfina was of Rs 47 crore and 70 lakh.

Earlier, the market regulator SEBI had barred Parekh from dealing in securities till December 2017 for master-minding an equities scam during 1999-2001.

Parekh and 17 other entities directly or indirectly associated or related to him were found to be involved in market manipulation of as many as nine stocks, SEBI said in its order.