It was this ready forward deal that Mehta and his accomplices used with great success to channel money from the banking system. The Securities and Exchange Board of India were able to identify that though Ketan Parekh was barred from entering the stock market for trading there were supposed to be a number of companies who were trading on behalf of Parekh.
He knew that he would be accused if people came to know about his involvement in issuing cheques to Mehta. In the early s, he moved to a lower level clerical job at the brokerage firm Harjivandas Nemidas Securities where he worked a jobber for the broker Prasann Pranjivandas Broker who he considered his "Guru".
Exploiting the loophole in the banking system Slide Katen Prekh's success in this scam involved a vast networking of a number of overseas corporate bodies, foreign institutional investors' sub-account and mutual funds for large money transactions.
Sucheta DalalThe Times of India A typical ready forward deal involved two banks brought together by a broker in lieu of a commission. Market at Harshad Mehta scam: Some of the top positioned CBI officials declared that Ketan Parekh has not only siphoned off money in Swiss Bank but also in different banks in various other countries.
Ketan however had bigger plans in mind. Firstly, he had been accepting money from the promoters of many companies to take their share prices up. Quit his job in to become a sub-broker. Katen Parekh also had an outstanding of Rs crores Rs 8.
Market at Ketan Parekh scam: These stocks came to be known as the K stocks and the market always seemed to be bullish about the future of these stocks. The Great Indian Scam It is a market in which money is lent for periods longer than a year. His pictures began to appear in newspapers with his comments on matters related to finance and the budget.
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 had altogether 28 cases registered against him. However, as a bear cartel started hammering the K stocks, Ketan Parekh found himself locked out of cash.
In a ready forward deal, securities were not moved back and forth in actuality. He targetted smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names.
Once these fake BRs were issued, they were passed on to other banks and the banks in turn gave money to Mehta, plainly assuming that they were lending against government securities when this was not really the case.
It stands quite ambiguous from the media platform. Ketan Parekh was immediately arrested and tried in court. Not only the above mentioned entities but various organization and firms had pending amount to be got from Katen Parekh according to the investigating report submitted by the Securities and Exchange Board of India SEBI.
In the 90s, he came in contact with Harshad Mehta, a well known stock broker and subsequently joined Mehta's firm GrowMore investmentsa firm that Mehta had set up and which was involved in the Indian stock market scam.
It promises to deliver the securities to the buyer. This can be seen as insider trading and by itself was enough to get Ketan Parekh into severe trouble. Around the same time, a bear cartel of brokers in Mumbai opposed to Parekh tried to dump their shares of K stocks.
These banks were willing to issue BRs as and when required, for a fee," the authors point out. He is survived by his wife and one son. Also Katen Parekh added and admitted to the evidence given to the investigation team that he used select scripts and made it possible to build huge positions in the stock market and thereby he crossed the limits and the principles of risk management.
KP used around 16 such accounts, either directly or through other broker firms, to obtain funds. It was alleged that MMCB issued funds to KP without proper collateral security and even crossed its capital market exposure limits.
But in spite of the loss there were non profitable transactions which were made which very clearly indicated that there was a substitute pay off which was happening outside the securities market.
The Great Indian Scam Who is this man. Mehta cleverly squeezed capital out of the banking system to address this requirement of banks and pumped this money into the share market.
Since he had to book profits in the end, the day he sold was the day when the markets crashed. It was also revealed that Katen Parekh using his rapport with political heads and religious leaders was able to hook up lot of funds from corporates and banks which had gone to three major groups on the CSE and had been utilized in different operations of the capital market.
This money was used to drive up the prices of stocks in the stock market. Ketan Parekh was found guilty by the court and was sentenced to imprisonment for a period of one year because of a transaction which was done by him involving a unit of Canara Bank in By the second half of Mehta had earned the nickname of the "Big Bull", because he was said to have started the bull run in the stock market.
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 tsfutbol.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, Ketan Parekh, Nirav Modi: Three Scams Spread Over A Quarter Century, But The Same Ruses Work but what links the Harshad Mehta scam to.
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.
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.
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 betweenHarshad mehta and ketan parekh scam