MUMBAI: Traders were caught off guard and 20-odd mid-cap stocks crashed on Thursday as Dalal Street got a whiff of default by a Kolkata-based operator who had arranged finance for many punters. The wave of selling in early trades baffled stock dealers, who tried to figure out how long the margin selling could last.
The operator, who was involved in the 2001 payment crisis in the Calcutta Stock Exchange and whose name figured in a 2010 Intelligence Bureau report, has changed tack in recent years.
He took positions in several small- and mid-cap stocks through front entities and arranged funding from several non-banking finance companies, including a few leading ones. According to market circles, he even maintained his links with Ketan Parekh, the disgraced broker who perpetrated the 2001 securities scam.
THE TIMES OF INDIA NEWS
www.marketfutureindia.com
The operator, who was involved in the 2001 payment crisis in the Calcutta Stock Exchange and whose name figured in a 2010 Intelligence Bureau report, has changed tack in recent years.
He took positions in several small- and mid-cap stocks through front entities and arranged funding from several non-banking finance companies, including a few leading ones. According to market circles, he even maintained his links with Ketan Parekh, the disgraced broker who perpetrated the 2001 securities scam.
THE TIMES OF INDIA NEWS
www.marketfutureindia.com
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