He was covered in a cover page article of a number of publications including the popular economic magazine Business Today, in an article titled "Raging Bull". Mehta siphoned off around Rs 1, crore from the banking system to buy stocks on the Bombay Stock Exchange.
This story appears in the 22 August, issue of Forbes India. Hence the name - bank receipt. Mehta used this money temporarily in his account to buy shares, thus hiking up demand of certain shares of good established companies like ACCSterlite Industries and Videocon dramatically, selling them off, passing on a part of the proceeds to the bank and keeping the rest for himself.
Then, the bank basically started making unsecured loans to him. He died following a brief heart ailment, at the age of 47, on 31 December Having figured out his scheme, Mehta needed banks which issued fake BRs Not backed by any government securities.
He also promised the banks higher rates of interest, while asking them to transfer the money into his personal account, under the guise of buying securities for them from other banks.
He is survived by his wife and one son. The price of shares in the cement company eventually rose from Rs. To Know more, click on About Us. Mehta used this money temporarily in his account to buy shares, thus hiking up demand of certain shares of good established companies like ACCSterlite Industries and Videocon dramatically, selling them off, passing on a part of the proceeds to the bank and keeping the rest for himself.
Then, as the market took over Ketan Parekh would liquidate his holdings slowly, once again making less noise than his mentor Harshad Mehta would have done. It also states that in the mean time, the seller holds the securities in trust of the buyer.
KP used around 16 such accounts, either directly or through other broker firms, to obtain funds.
Please reference authorship of content used, including link s to ManagementStudyGuide. Mehta complained of chest pain late at night and was admitted to the Thane civil Hospital.
The scam came to light when the State Bank of India reported a shortfall in government securities. It promises to deliver the securities to the buyer. Veyini Ramamoorthy at. Harshad Mehta, Ketan Parekh, Nirav Modi: Three Scams Spread Over A Quarter Century, But The Same Ruses Work but what links the Harshad Mehta scam to.
Ketan Parekh a trainee of Harshad Mehta from Mumbai was a former stock broker who was declared to be guilty of a criminal offence by the verdict of the jury for he played a major manipulative role in the Indian stock market scam which took place between Harshad mehta & Ketan Parekh Scam 1.
Harshad Mehta Scam 2. • Used to buy stock at rock bottom prices and then push it up • Self-made man • Media Savvy • Used to buy stock at rock bottom prices and then push it up Ketan Parekh Harshad Mehta Comparative Analysis of Both Scams • Hailed from the family of stock-brokers • Shied away from media • Banks involved in the scam • Banks.
The Ketan Parekh scam was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta scam. To make matters worse, Ketan Parekh was himself a protégé of Harshad Mehta and had learned stock trading from the pied piper of Bombay Stock Exchange himself.
Harshad Mehta & Ketan Parekh Scam Harshad Mehta: the high-profile stockbroker Harshad Shantilal Mehta () was an Indian stockbroker who grabbed headlines for the notorious BSE security scam of Born in a lower middle-class Gujarati Jain family, Mehta spent his early childhood in Mumbai where his father was a small-time businessman.
Ketan Parekh followed Harshad Mehta's footsteps to swindle crores of rupees from banks. A chartered accountant he used to run a family business, NH thesanfranista.com however had bigger plans in mind.
He targetted smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names.Harshad mehta and ketan parekh scam