Stock market scams in india

1. STOCK MARKET SCAMS IN INDIA

2. 1) Harshad Mehta
• Estimated Size : Rs 4,000 crore
• Mode of Operation : Used money from banks
to make personal gains via investment in
shares
• Discovered in : 1992

3. Harshad and his associates initiated a securities scam
by diverting funds of about Rs 5,000 crore from the
banks to stockbrokers between April 1991 to May 1992.
After the scam was exposed, the stock markets crashed
and Mehta was arrested and banned from trading in
the stock markets.

4. 2) Ramalinga Raju
• Estimated Size : Rs 14,162 crore
• Mode of Operation : The top management of
the software company cooked up accounts to
show inflated sales, profits and margins from
2003 to 2008.
• Discovered in : 2009

5. Ramalingam Raju along with 2 other
cooked up accounts to show increased
sales, profits and margins from 2003 to
2008. On April 9, 2015, B. Ramalinga Raju,
along with 9 others were pronounced
guilty in the Satyam Scam.

6. 3) Subrata roy
• Sahara Housing bonds
• Estimated Size: Rs 24,029 crore
• Mode of Operation: Bonds issued to 29.6
million investors without following Sebi
regulations and investor protection measures
mentioned therein
• Discovered in: 2010

7. Subrata Roy in the name Sahara Housing Bonds, which
were issued to many investors without following SEBI
regulations and any investor protection measures
mentioned therein. The case is still on and one has to
wait for the outcome.