New Delhi: Market regulator SEBI (Securities and Exchange Board of India) has found that promoter of the beleaguered Global Trust Bank (GTB) Ramesh Gelli and eight other entities including two FIIs (Foreign Institutional Investors) had offloaded GTB scrips even after the Centre announced moratorium on the bank.

Minister of State for Finance S S Palanimanickam said in a written reply to Rajya Sabha that SEBI has conducted an investigation into the trading in GTB scrips during April 1, 2004 upto July 29, 2004.

SEBI, which is yet to complete its investigation, found that after the completion of the course of prohibition, Ramesh Gelli sold 21,67,318 shares, Premkala Gelli sold 22,56,437 shares, Girish Gelli 9,55,651 shares, Annapurna Sridhar 3,85,595 shares and Neeraj Gelli 14,86,787 shares between April 1 and July 29, 2004.

Government had imposed moratorium on GTB on July 24.

The other entities that sold shares include Ashok Mittal and Co (15,37,729 shares), Claridges Investment and Finance (7,33,085 shares), European Investments (4,665,000 shares) and Far East Investments (5,525,000 shares).

SEBI had informed on December 31, 2002 that an ex-parte ad-interim order was passed by it against the promoters of GTB and other 50 entities debarring them from dealing in GTB srips till investigation was complete.

The promoter group entities had filed an appeal before Securities and Appellate Tribunal (SAT) on April 19, 2004 and the Tribunal stayed the order of SEBI for four weeks following which the regulator appealed before the Supreme Court, which stayed the order passed by SAT.

Thus prohibition order ran its course upto June 30, 2004, the reply said.