A small presentation on Harshad Mehta

1. PCTE Group Of Institutes,
Ludhiana
• BCA 1st Semester
• Topic : THE BIG BULL
• Name : Bhavik Jain
• Submitted To : Harinder Pal Sir
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2. THE BIG BULL
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3. Who was the “BIG
BULL” ?
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Name: Harshad Shanti Lal Mehta
Born: 29 July 1954
Belongs: Gujarati Jain Family of Paneli Moti, Rajkot
Father’s Occupation: Small Textile Businessman of
Borivali
Occupation: Indian Stockbroker, Businessman
Married With: Jyoti Mehta

4. Professional
Background
• sales person in the Mumbai office of New India
Assurance Company Limited (NIACL)
• Interest in Stocks, Resigned from that too
• Joined Stock Brokerage Firm ( Named
Harjivandas Nemidas Securities)
• Worked For Broker Prasaan ( Guru ) as jobber (
Distributer )
• By 1990, He is known as “ Amitabh Bachchan Of
Share Market”
• Got Prominent for the Indian Security Industry
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5. A Step To
Success………
• By 1990, started heavy trading in Associated Cement
Company (ACC)
• Share price goes from ₹200 to nearly ₹9,000
• Stated that Stock of ACC is undervalued According to his
“Replacement Cost Theory”
• Which finds to be True…..
• Media named him “ THE BIG BULL” after this
• Business Toady Named him “RAGING BULL”
• Sea facing 15,000 square feet penthouse with Mini Golf
in Worli
• Car Collection of Toyota Corolla, Lexus LS400, and Toyota
Sera
• Rarities even for the rich people of India
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6. Incident Of 1992
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7. Stamp
Paper
Shakedown
• By 1990, Banks not allowed in Stock Exchange
• However, they were expected to post profits
• Retain a certain ratio (threshold) of their
assets in government fixed interest bonds
• Mehta enjoys this opportunity and uses stock
market
• Promising banks a high rate of interests
• transfers the funds to personal account
• under the guise of buying securities for them
from other banks
• Uses these funds in raising share prices
• Rosed shares are sold and kept the profits
• That’s how ACC share shows a growth of
4,400℅ in just 3 months
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8. Bank Receipts
• What is BR ?
• Excessively use in 1992 shakedown
• Serves as Receipts for Government Securities from Selling Banks
• Promises that they will receive securities
• Mehta figures that out
• And Manage to issue fake BRs
• Once BRs are issue were passed to Buyer Bank
• Money were transferred to Mehta’s Account
• Uses fund in Stock Market
• Take BRs from Buying Banks by Giving their Money Back with Interest
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9. Outbreak of 1992 Shakedown
• On 23th April 1992, Sucheta Dalal exposed in The Times of India
• No one had a clue about Mehta's operations before Article
• After this Article lot of banks were left holding BRs with no values
• the banking system had been swindled of a
whopping ₹40 billion (equivalent to ₹250 billion in 2019 )
• Banks accused if people came to know
• Industrialists like Aditya Birla, Hemendra Kothari, a number of
politicians, and the RBI Governor S.Venkitaramanan all had played
a role in allowing Mehta's rigging of the share market
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10. Conclusion
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11. References
• https://en.wikipedia.org/wiki/Harshad_Mehta
• https://www.slideshare.net/akshayvirkar/harsh
ad-mehta-scam-23989069