He believed in bull market , which was very rare at that time. And believed in rising the price instead of decreasing it.The index fell from 4500 to 2500 representing a loss of Rs. 100,000 crores in market capitalization.
Member : Navin Pal
Neeraj Bidlan 22
Name: Harshad Shantilal Mehta
Born in: 29 July 1953
Died in: 31 December 2001
Profession: Chartered Accountant & Stockbroker
He earned degree in Bachelor of Commerce
Started his working life as an employee of the
New India Assurance Company
In the early eighties he quit his job and sought a
job with stock broker P. Ambalal affiliated to
Bombay Stock Exchange
He became a jobber on BSE for stock broker P.D.
Shukla after that
In 1981 he became a sub-broker for stock brokers
J.L. Shah and Nandalal Sheth
He took advantages of loopholes in banking system
He triggered SENSEX in 1992 & made the scam by
diverting funds of Rs.4,000 crore
Bought the shares of own company by himself
causing Sensex up
Purchased Huge amount of shares of a targeted
company like ACC .
Created fake BRs, or BRs not backed by any
Illegally issue of BR by small bank
Without verification, banks like “Vijaya Bank”
issued the cheque
Recommendation to purchase particular shares on
his own website
Mehta & His Associates.
Bank of Karad (BOK).
Metropolitan Co- Operative Bank.
soon mastered the tricks of trade by
managing several brokers and set out on dangerous
Mehta has siphons off the huge money from several
banks and million of investors were connecting the
His scam was exposed and the market crashed.
triggered the rise in Bombay stock exchange in
the year 1992 by trading in shares at premium
across many segments
advantages of loopholes in the banking
system, harshad and his associates triggered a
securities scam diverting funds to the tune of RS
4000 crore from the banks to stock holders
between April 1991 to may 1992.
was arrested and banned for life from trading
in the stock markets
culprits were brokers, bankers and financial
was charged with 72 criminal offences. A
special court also sentenced Sudhir Mehta,
harshad’s brother, 6 others, including four bank
got rigorous imprisonment from 1 year to 10
years on a charge of dumping state bank of India
to the tune of RS. 600 crore in connection with
the securities scam than rocked the financial
markets in 1992.
(flashy cars and life like a celebrity)
31st December 2001- the death of the bull
Forever remembered as the architect RS. 50 billion
was later charged with 72 criminal offenses,
and more than 600 civil action suits were filed
was arrested and banished from the stock
and his brothers were arrested by the CBI on
November 9, 1992 for allegedly misappropriating
more than 27 lakh shares of about 90 companies
is no effect on society
Reasons: Acts only if it affects
People forget things easily
Government taking things lightly
THUS Within 10 years history repeated
Just a new name to blame Ketan Parekh
transactions must be allowed to be done
openly and transparently, and the role of brokers
as market makers must be recognized.
barriers between the money market and
the capital market, between the market for
corporate securities and the market for
government securities and between the formal
money market and the informal one must be
Mehta was brave stock broker. He knew
the loopholes in banking system as well as how to
exploit that loopholes. His whole intension to do
this was to rise in SENSEX.