The basic question that the book deals with is, what really happened in the two great indian scams. This 8th edition of the scam includes the original harshad mehta scam and the ketan parekh scam, while also delving into the jpc fiasco and the global trust bank scam. After the harshad mehta scam, a chartered accountant named ketan parekh had similar plans of arranging comparable securities scam. The first arrest in the scam was of the noted bull, 5 ketan parekh kp, on march 30, 2001, by the central bureau of investigation cbi.
In 1992, it was harshad mehta, and in 2001, ketan parekh. The ketan parekh fraud and supervisory lapses of the reserve bank. That will cover 23 modules of business and digital marketing like. A case study purpose the purposes in this paper are. He targetted smaller exchanges like the allahabad stock exchange and the calcutta stock exchange, and bought shares in fictitious names. A mumbai based stock broker chartered accountant by profession kp took advantage of low liquidity in certain stocks which later came to be known as k 10 stocks held significant stakes in the k 10 companies the buoyant stock markets from january to july 1999 helped the k10 stocks increase in value substantially as a. The problem actually started when mehta started buying the shares of associated cement company acc and increased the price of the shares from rs. Ketan v parekh vs special director dir of enforcement.
Harshad mehta, ketan parekh sharemarket scams explained. Ketan parekh held in 2001 case linked to scam times of india. Introduction the ketan parekh scam was one of the most important scam that rocked the bombay stock exchange. Pied pieper of dalal street ketan parekh is a former stock broker from mumbai, india popularly known as bombay bull. During this period, parekh artificially rigged prices of certain chosen securities informally referred to as k10 s. Ipo scam kp and his coterie of operators allegedly manipulated the initial share issue of many companies. The role of statutory auditors of erstwhile gtb had come under the scanner in the backdrop of ketan parekh stock market scam that came into light in 200001 period. The ketan parekh scam ketan parikh, md is a cardiology specialist in eldersburg, md and has been practicing for 17 years. Better known as the pentafour bull, he kept a low profile, except when he threw a millennium bash that was. The ketan parekh scam was the second most important scam that rocked the bombay stock exchange after the harshad mehta scam. Mehtas life and his 1992 scam are covered in great detail by sucheta dalal and debashish basu in their book the scam. Sebi grade a study material unfair trade practices. Just like mehta, parekh was also using the manipulative strategies to rig the stock prices.
Former stockbroker ketan parekh, a key figure in the 2001 securities scam involving madhavpura mercantile cooperative bank, was arrested and remanded in judicial custody by a sebi special. Ketan parekh had created a 200% annual return on some stocks. Ketan parekh followed harshad mehtas footsteps to swindle crores of rupees from banks. He came in contact with mehta in 90s and started working in his firm growmore investments. The mega growth that had been witnessed by the exchange in one year came crashing down in a matter of days.
A mumbai based stock broker chartered accountant by profession kp took advantage of low liquidity in certain stocks which later came to be known as k 10 stocks held significant stakes in the k 10 companies the buoyant stock markets from january to july 1999 helped the k10 stocks increase in value. Famous scams in indian stock markets history groww. I, the chairman of the joint committee on stock market scam and matters relating thereto. Former stockbroker ketan parekh, linked to the 2001 securities scam, will continue to remain in jail after a special sebi court on friday rejected his bail application.
Ketan parekh is a former stock broker from mumbaiindiawho was convicted infor involvement in the indian stock market manipulation scam that occurred from late to ketan parekh scam retrieved 7 may as cover stories emerged in the financial media of his malpractices related to the stock market, ketan parekh scam shifted ketab his ketan parekh scam. The ketan parekh fraud and supervisory lapses of the reserve bank of india rbi. Pdf the ketan parekh fraud and supervisory lapses of the. Use features like bookmarks, note taking and highlighting while reading the scam. During this period, parekh artificially rigged prices of certain chosen securities informally referred to as k10 stocks, using large sums of money borrowed.
Case study ketan parekh scam 2001whistleblower the case is based on reports in the print and electronic media. See the complete profile on linkedin and discover ketans. From harshad mehta to ketan parekh who won, who lost, who got away is the author of the scam 3. Parekh was sent to judicial custody last week when he surrendered before the court after a nonbailable warrant was issued against him. How did ketan parekh singlehandedly run the bull on the. Icai blames litigations for delay in action 30 jun, 2015, 08. He borrowed from various banks and companies for this purpose. Introduction ketan parekh is a mumbai based share and stock broker. It was alleged that mehta engaged in a massive stock manipulation scheme financed by worthless bank receipts. Ketan parekh was not available for comments and did not respond to repeated text messages. Frauds of share markets harshad mehta scam jordon belfort. Born in a lower middleclass gujarati jain family, mehta spent his early childhood in mumbai where his father was a smalltime businessman.
He not only took banks by surprise but also two stock exchanges namely. Ketan parekh was himself a protege of harshad mehta and had learned stock trading from the bombay stock exchange himself. Soon, reports abounded as to how kp had single handedly caused one of the biggest scams in the history of indian financial markets. He is from a well to do sharebrokerage based family. The ketan parekh scam free management articles free. Harshad mehta mentored him and walked him through the nooks and corners of the stock exchange. Harshad mehta started his career as an employee of new india assurance company but later quit the job to play the stock market. A chartered accountant he used to run a family business, nh securities.
Soon harshad mehta started buying shares in heavy numbers and soon his name became very well known in the indian stock market. Harshad mehta was an indian stockbroker, well known for his wealth and for having been charged with numerous financial crimes that took place in the 1992 securities scam of the 27 criminal charges brought against him, he was only convicted of four, before his death at age 47 in 2001. Ketan parekh was a chartered accountant and had worked with harshad mehta in the past. Harshad mehta and ketan parekh scam essay 443 words. The harshad mehta scam was discovered when attention was paid to the money missing from the government securities market. Former stockbroker ketan parekh, a key figure in the 2001 securities scam involving madhavpura mercantile cooperative bank, was arrested and remanded in judicial custody by a. He used to get these shares bought and getting them traded between his own network of companies.
The punjab national bank pnb scam has an uncanny similarity to the ketan parekh kp bank scam in 2001. Grow more research and asset management company ltd. According to market sources, though ketan parekh kp was a successful broker, he did not have the money to buy large stakes. 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. Download it once and read it on your kindle device, pc, phones or tablets. May 25, 2018 lets make your business digital with lapaas. The crash that shook the nation the 176point1 sensex2 crash on march 1, 2001 came as a major shock for the government of. Sep 09, 2010 ketan parekh is a mumbai based share and stock broker. Post the harshad mehta scam, ketan parekh, a chartered accountant had similar plans. As the scam broke loose, the valuations in the bombay stock exchange collapsed. He was involved in the shares scam of the year 200001.
The answer to this question, detailed in the book, brings up another. Parekh and panthar fincap and management services ltd. He was a successful stock broker but he did not have enough money to singlehandedly move the market. That will cover 23 modules of business and digital marketing like seo, sem, email marketing, social. Bank of indias boi 18yearoldyear old legal struggle against the scamtainted ketan parekh has finally paid off. Harshad mehta, ketan parekh sharemarket scams explained duration. During this period, parekh artificially rigged prices of certain chosen securities informally referred to as k10 stocks, using large sums of money borrowed from banks including the madhavpura mercantile co. Presentation on harshad mehta scam linkedin slideshare. The governmentowned bank has managed to recover the entire money in the rs 7 crore payorder scam involving parekhs group of companies and ahmedabadbased madhavpura mercantile cooperative bank ltd mmcb get more india news and business news on zee business. Mumbai, nov 4 a special sebi court here has sent former stock broker ketan parekh, a key figure in the 2001 securities scam involving the madhavpura mercantile cooperative bank, to judicial custody for nonappearance in a court case filed by the securities and exchange board of india sebi sebi is prosecuting parekh for various offences, including market manipulation. As a result, he was able to achieve a similar feat as.
Ketan parekh can best be described as the pied piper of dalal street. Mumbai, nov 4 a special sebi court here has sent former stock broker ketan parekh, a key figure in the 2001 securities scam involving the madhavpura mercantile cooperative bank, to judicial custody for nonappearance in a court case filed by the securities and exchange board of india sebi. According to a report 1 12 lakh shares of global in july 1999 would have cost kp around rs 200 million. Sep 09, 2010 ketan parekh scam and its impact on financial institutions ketan parekh was threatening to sue the bank of india for defamation, because it complained about the bouncing of rs 1.
To make matters worse, ketan parekh was himself a protege of harshad mehta and had learned stock trading from the pied piper of bombay stock exchange himself. He graduated from ross university, roseau in 1997 and specializes in cardiology. The modus operandi of ketan parekh was to look out for stocks which had a low market capitalization and low liquidity. View ketan parekhs profile on linkedin, the worlds largest professional community. Scribd is the worlds largest social reading and publishing site. Ketan parekh scam amazing video ketan parekh scam amazing video skip navigation. Ketan parekh is a mumbai based share and stock broker. The scam, by debashish basu and sucheta dalalit is an investigative account of the two major stock market scams that shook indiaone in 1992 by harshad mehta and the other in 2001 by ketan parekhthe book is an eye opener in terms of how individuals and institutions both public sector and private sector used the financial system of the. A small investor hit by the ketan parekh scam, in april 2001. Dec 23, 2014 ketan parekh scam amazing video ketan parekh scam amazing video skip navigation. Worked with stock brokers and soon managed to get a brokers card. The writer has no selection from business ethics, 2nd edition book.
Ketan parekh managing director invictus capital partners. Better known as the pentafour bull, he kept a low profile, except when he threw a millennium bash that was attended by politicians, business magnates and film stars. Kp arrested on 30 march 2001 for the security market scam known as ketan parekh scam. He was convicted in 2008, for involvement in the indian stock market manipulation scam in late 19992001.
If youre looking for a free download links of the scam. Ketan parekh scam and its impact on financial institutions. The study by sebi found that the flow of funds originating from ketan parekh, when paired with securities market transactions of connected clients leads. For two years, marketmen followed his every action because all he touched turned to gold. Parekh was sent to judicial custody last week when he surrendered before the court after a. Aug 24, 2018 ketan parekh is a former stock broker from mumbaiindiawho was convicted infor involvement in the indian stock market manipulation scam that occurred from late to ketan parekh scam retrieved 7 may as cover stories emerged in the financial media of his malpractices related to the stock market, ketan parekh scam shifted ketab his ketan parekh scam. I, the chairman of the joint committee on stock market scam and matters relating thereto, having been authorized by the committee to submit the report on their behalf, present the report of the committee. The stake in aftek infosys would have cost him rs 50 million, while the zee and hfcl stakes would have cost rs 250. Jpc report on the 2001 indian stock market scam ketan parekh scam tabled in the th lok sabha pdf 1 ed. Harshad mehtas trial has been referred to in 2001 bollywood movie nayak. Presentation on ketan parekh scam linkedin slideshare. Coincidently, ketan used to work as a trainee under harshad mehta earlier and hence also known as the heir of harshad mehtas scam technique.