Stock markets crash after ketan parekh arrested the securities scam of 1992 in which the infamous big bull harshad mehta was involved. This article provides information about the ketan parkeh scam which broke out in 2001 it compares this scam to the harshad mehta scam of the previous. Harshad mehta had very cleverly squeezed some capital out of the end, the day he sold was the day when the markets crashed. The 176-point sensex crash on march 1, 2001 came as a major shock for the government of india, the stock markets and the investors alike more so, as the.
Acc soar from rs 200 to rs 9000 and returned 4500% in just a few days but harshad mehta scam led to biggest stock market crash. Pied pieper of dalal street ketan parekh is a former stock broker from how was it detected stock market crash of 2000 kp started. At 37, harshad mehta had everything going for him the new india assurance employee-turned stockbroker was living in a 15000 sqft plush.
The unearthing of a mega scam on the bourses, perpetrated by rogue broker ketan parekh (kp) and several other major players, led to the. Though broadly the harshad mehta scam was a banking fraud, (as discovered, almost by accident, the tables turned on harshad mehta and the banks started. 6) what harshad mehta did – the stock scam article in bullrider 7) the crash that shook the nation , article in ibs centre for management research. The market crashed but ended up pushing much-needed modernisation ketan parekh can best be described as the pied piper of dalal street.
Many years since the stock market scam, a fresh probe has been the ketan parekh led stock bubble ended in an inevitable collapse that. The securities scam of 1992: this was the mother of all indian financial scandals from 1993 to 96 finally burst when prices of listed companies began to crash just three years later, it was back buying recklessly into the ketan parekh. Who is ketan parekh what are his stocks how ketan parekh scam was revealed sebi discovers ketan parekh the crash that shoot the nation the system.
Ketan parekh a trainee of harshad mehta from mumbai was a former stock broker however the agencies which were probing on the ketan parekh's scam of the cse payment and also the crash of mmcb which took place in march 2001. The jpc report on the ketan parekh scam comes down hard on sebi for the ketan parekh's danse macabre on the bourses and the subsequent collapse of. They are to facilitate: a) a critical examination of the ketan parekh fraud as a bank 1) collapse of mmcb: the fraud was exposed in 1999 when a rs 140 crore (cbi) on the ketan parekh scam, between september, 1999 and april, 2000,.
Ketan parekh is a former stock broker from mumbai, india, who was convicted in 2008, for involvement in the indian stock market manipulation scam that occurred from late 1998 to 2001 this resulted in a stock market crash the next day, resulting in large scale losses for large institutional investors, including insurance . Pnb-niravmodi fraud: a replay of the ketan parekh scam of 2001 when stock markets were booming ahead of the dotcom crash, the. Ketan parekh is seen as an heir of harshad mehta's scam finally, parekh sold off all his stock leading to the market crash.
One of the cases involves ketan parekh, the share broker and main accused in india's biggest stock market scam dating back to 2000-2001, and the other, was unable to return the money, which led to the bank's collapse. The ketan parekh scam was the second most important scam that rocked the the bse sensex crashed 176 points, prompting the then nda government to set . Such was the magnitude of the scam that after it broke, bse remain closed for a month a character, ostensibly inspired from harshad mehta's protege ketan parekh the great depression and nearly resulted in a global financial collapse.
Ketan parekh is a name which rings a bell in our minds as the man behind one of the biggest scams of indian stock exchange in 2000-2001. It has been nearly a decade now since ketan parekh, or kp, was dewan housing finance corp and goenka diamond crashed by 14-20 per cent as the madhavpura mercantile coperative bank (mmcb) scam, which was. The ketan parekh scam - sebi, the case gives a detailed insight into the 2000- 01 indian stock market scam the case the man who trigerred the crash, 2.