• ​Cals Refineries Ltd, a penny stock, is again in the limelight with a special court under the Prevention of Money Laundering Act (PMLA) directing the Mumbai anti-corruption bureau (ACB) to register a first information report (FIR) against top officials of the Securities and Exchange Board of India (SEBI) and the Bombay Stock Exchange (BSE). The complainant alleged that officials from SEBI and BSE failed to comply with essential regulatory norms, including disclosure requirements and due diligence procedures and allowed Cals Refineries to list in 1994. Both SEBI and BSE decided to challenge the court order in this matter.
• In a release, the market regulator says, "Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record. The applicant is known to be a frivolous and habitual litigant, with previous applications being dismissed by the Court, with imposition of costs in some cases."
• "SEBI would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters," it added.
• In a statement, BSE says the court has allowed the application without issuing any notice or granting any opportunity to the Exchange to place the facts on record. "The named company, Cals Refineries, was listed at BSE in 1994. The officials named in the application were not in their respective positions at the time of listing and were not connected with the company at all. The application is frivolous and vexatious in nature. BSE is initiating necessary and appropriate legal steps in this regard."
• Coming back to Cals Refineries which, over the years, has been found to have indulged in massive stock manipulation and global depository receipts (GDRs) scam. Not to forget the scrip's links with Ketan Parekh (KP), the prime accused in the securities scam of 2000-2001. He was banned by SEBI for 14 years. In January 2025, SEBI discovered that Mr Parekh covertly orchestrated a Rs65 crore front-running operation.
• On 5 June 2009, SEBI banned 26 entities allegedly 'connected' with KP which had traded in Cals Refineries, Confidence Petroleum India, Bang Overseas, Shree Precoated Steels and Temptation Foods. In doing so, the regulator officially declared what was well known to the market, as Moneylife repeatedly pointed out that KP has been active in the market and in manipulating the prices of small and medium scrips, despite the 14-year ban imposed on him and his associates in 2003.
• As reported by Moneylife in July 2010, Cals Refineries was attracting millions of trades, but there was no scrutiny. "Internet message boards and forums around this company are very active (a true understatement) and range from outright attempts to lure more investors into this share to half-hearted attempts to console shareholders who have bought at higher prices, possibly by trapped shareholders themselves. Most hopes are centred around the promoter company coming out with some fantastic announcement that is going to save all the trapped investors and make the speculators rich." 
  
  

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