2. INTRODUCTIO
N
Family : Gujrati Jain Family.
Father : Mr. Shantilal Mehta.
Childhood was spent in Mumbai.
First Job: Dispatch Clerk in the New India Assurance
Company.
Quit his job in 1981 to become a sub broker.
Want to become one of the most successful sub broker.
The rage to riches story- that’s why earning name of “BIG
BULL”.
3. ABOUT SCAM
MANUPULATION OF FUNDS
Diversion of funds.
Use of ready forward to maintain a SLR.
Ready forward is an essence a secured
short term (15 day) loan from one bank to
another, bank has some securities deposit
to RBI.
4. GROWTH PERIOD OF BIG BULL
Exploting the loop hole in the banking system:
He found some wrong pattern on trades in stock exchange.
Harshad Mehta’s trademark style:
He used to study fundamentals.
He used to buy in big quantity and than.
He used to make it public.
5. In 1992, first article came out against this dream merchant &
the story was about 600+ crores rupee scam from SBI.
As per the article, he used “ready forward deal” for this scam.
As per Indian law, it was not allowed to give such ready
forward loan to any individual person by bank.
6. EXPOSURE OF 1992 SECURITIES SCAM
She is a Columnist In Times Of India.
She got PADAM BHUSAN for journalism by A.P.J.Abdul Kalam.
As the scam was exposed, BR value became almost 0.
Crash on some financial institute.
Sucheta Dalal wrote an article in Times Of India & exposed scam.
7. IMPACT OF SCAM ON MARKET
Sensex fell from 4500 to 2500 loosing 100,000
crore in market capitalization.
The liberalization policies were put on hold
By government.
Inability of Indian companies to raise capital
In world markets.
Banks has to face huge looses.
BR was removed by RBI.
8. Late 2001, place Thane Jail, the jail came to know about end of
Bull era with news of Harshad Mehta Death.
Reason was Heart Attack, but it was shocking to know that
before he died was he was proved innocent in all cases against
him.
