HARSHAD MEHTA

&
KETAN PAREKH
SCAM
 HARSHAD SHANTILAL
MEHTA

• BORN : 29th JULY 1953

• DIED : 31st DECEMBER 2001
• PROFESSION : BROKER
• HE EARNED IN BACHELORS OF COMMERCE
• STARTED HIS WORKING LIFE AS AN
EMPLOYEE, OF THE NEW INDIA
ASSSURANCE COMPANY
 SCAM 1992
• HARSHAD MEHTA STARTED A
COMPANY IN 1984 WITH HIS
BROTHER AND THE COMPANY
NAME IS – GROW MORE
RESEARCH AND ASSET
MANAGEMENT
• HE ACTED AS A BROKER IN
BSE(BOMBAY STOCK
EXCHANGE)
• THE TECHNIQUE HE IS USED IN
SCAMS WAS READY FORWARD
DEAL
 SCAM 1992
 INSTRUMENTS AND
TECHNIQUES THAT
WERE USED BY
HARSHAD MEHTA
WERE
• READY FORWARD
• BANK RECEIPT
 KETAN PAREKH
• BORN : 1981
• PROFESSION : CA (CHARATERED
ACCOUNTANT)
• WAS IN AN AVID FOLLOWER OF HARSHAD
MEHTA AND WAS A TRAINEE IN HIS COMPANY
• LEARNT ABOUT STOCK MARKET FROM
MONEY CARE FIRM.
• AND USED TO MANAGE FAMILY BUSINESS
 SCAM 2001
• KETAN PAREKH USED BANK AND
PROMOTER FUNDS TO RIG UP THE
MARKETS THROUGH THE
CIRCULAR TRADING MECHANISM
• BORROWED HUGE FUNDS FROM
GTB AND MMCB
• DUMPED THE RIGGED UP STOCKS
IN FINANCIAL INSTITUTION
• A PAYMENT CRISI TRIGGERED BY
KOLKATA BASED BEAR CARTEL
BROUGHT PAREKH DOWN WITH
THE FALL IN HIS KT STOCKS
 SCAM 2001
• THE TACTICS USED
BY KETAN PAREKH
WERE :-
• CIRCULAR TRADING
• PUMP AND DUMP
SCHEME
• PAY ORDER
 ANALYSIS
• BANKS WERE INVOLVED IN THE SCAM AND SUFFERED HUGE
LOSSES
• SCAM OCCURRED INSPITE OF PRESENCE OF SEBI
• SUCHETA DALAL PLAYED AN IMPORTANT ROLE IN EXPOSING
BOTH SCAMS
• BOTH CASES WERE RELATED WITH MANIPULATION OF STOCK
MARKETS
• USED TO BUY STOCKS AT ROCK BOTTOM PRICES AND THEN PUSH
IT UP
• THESE SCAMS EXPOSED THE LOOPHOLES EXISTING IN THE
STOCK MARKET AT THAT TIME WHICH LED TO NUMEROUS
REFORMS