Harshad mehta ppt

1. THE SCAM
1992- Harshad Mehta scam was been out by Sucheta Dalal

2. 1979- The Story of Dreams
Shantilal Mehta
Ashwin Harshad Sudhir Hitesh
Failed
textile
Business
Big
Dreams
Unemployed
Did many
jobs
Stock Market
jobber

3. • 1980-BSE
• Mid 80 – 81’s
He became a Broker in BSE with the Nanda lal shah, His Strategies and Techniques are being tested on stocks like Alwar Pharma.
His Mind started working harder for funds. His name did wonders for raising the prices of these stocks.
• Market Crash-1982
On his first days at BSE Ring, he learnt the game under Ketan but in very few years he had become best jobbers and he also learnt
about Insider Trading. Under Ambalal he started doing Insider trading, he was given tip to target the stocks. This has been done
with many companies like National Rayon etc. By Insider Trading Harshad and Ketan has made good profits.
It was his first setback where lost around 12 lakh to the bear gang who poured shares into the market. His strategies are different
but many hasn’t lost faith in him. when there is no funds he started thinking of keeping a consultancy firm.
• Growmore
Harshad friends introduced him to corporates for funds and sudden demise of Indira Gandhi, Bears thought to end the Bull earn at
the BSE. There was a direct face-off btw cobra and Harshad on stocks like Indrol , Spic etc. Cobra want to tarnish the image of
mongoose but with tip he stopped the rumors about him rose high up the ladder.
• Funds-1986
After the 1986 crash Harshad is desperate need of funds so he started Institutional brokerage, earned 1.5% commission but he
isn’t satisfied with that, He started thinking of money market which has volume of 2Lakh crores.He started understanding
money market which we can understand in the next slide.

4. Grow More Consultants
Money Market
BSE
Hired Ketan who
helped Harshad in
initial days
Manu Mundra
black Cobra
Institutional
brokerage
Through brokers banks
exchange securities
balance their accounts via
SGL but often they use
BR’s. These were
deposited in PDO’s of
RBI. 14 day period will be
there for gurantee
Citi Bank
cartel
Grind lays,
BOA,SBI other
small banks
cartel
Bankerage :- Harshad took positions in the market by getting good deals for banks which he made commissions over them
and managers he called that term bankerage based on history and his time for securitites

5. Ready Forward
deal
Fake BR
Canara
bank
Grindlays
Issue Cheque For Securities
He used these cheques to fund the stocks and rise the market make the
bull run after the 10-11 days he used to return the securities
BSE
1990
Stanchart
Bok issued 200cr sec

6. RBI has seen these irregularities in the system and governor
has informed the authorities to make formal audit so that they know the inside situation of the markets and banks this was leaked by
Sucheta Dalal Later turned into the RBI has issued strict guidelines in the use of BR’s.
This has caused some problems to all the banks including Citi Bank because they used to this in a very classy way so that they wont
get caught under Harshad. Guidelines has made brokers life so hard that they have to make securities transactions in a day not put
amount in their accounts.
He found another loop he made some people to Deposit a bank and got Line of Credit to invest in BSE and manager got % it is
termed as Bankerage.

7. PSU’s
Harshad has set his eyes on NTPC, IRFC, NHPC, ONGC, Coal India etc. he made them to invest in PMS Schemes in Bank which
banks used to indirectly invest in the stock market. This made BSE go crazy and there is no stop for Bull run in the market.
Meanwhile Harshad has opened many shell companies and people used invest in them by seeing the name of HARSHAD MEHTA.
Like:- MAZDA Industries

8. LPG
The sudden death of Rajiv Gandhi, arrival of PV Narsimha rao govt too doesn’t change the trend in BSE. Harshad has taken ACC to
the skies and promised POLO for raising their price. Bear gang, Citi Bank, Grind lays joined hands want Harshad’s Polo to go down.
Sucheta has made everything clear about attacking the Harshad mehta and her sources have made detailed explanation to SEBI
governor.
This has caused rift and Harshad bought 500cr cheque without return of BR’s or SGL from SBI(Sitharaman). Harshad and SBI has
multiple transactions which is about 12000crs. He told them to return with PNB securities but he used these funds to channelize
stocks.
He made the advertisement to clear the image of his investments and market touched 2000 points leading the run, many earned
profit. later Sucheta Dalal countered with same line into her article which made Harshad mad. Sucheta knows mehta techniques are
not legitimate. Then the first income tax raid was happened to mehta but everything was hidden.

9. SBI-500crs Leak
He was first to say Trading can be done from home, India reach heights and investing in India. RBI governor has concerned
about BSE touching 3000 mark advised the company on that also cooling the markets. SEBI governor has also informed his
concerns about the markets and powers aren’t vested in them. All eyes on Harshad Mehta from Bear gang to RBI governor
every one wants to know about the source of funds of Mehta and SBI account fluctuations has got an eye he was trailed by
170crs and off the books 500crs. This was leaked to the public every one terrified and Sucheta also got her sources confirmed
on this. On the other hand SENSEX is falling by 400 points by words of RBI governor.
After scrutinizing SBI has 500crs difference in there PDO accounts this caused rift and mehta mind started working to adjust
the funds and delhi government also helped him to get and backed him every possible way National Housing finance granted
him amount and people started to forget as he repaid the amount to SBI.
Sucheta digged deep she found the bank irregularities on issuing of cheques and BR’s on the names of brokers they utilized
these funds to pump the markets though it works on the trust of the brokers and in markets these are acceptable approaches but
as it is against the RBI guidelines. As Harshad Mehta is a Big Bull everyone spotted him but every broker does the same in the
market. She broke the news TOI published it. Then HARSHAD himself admitted that he is BIGBULL.

10. THE FALL
April 28-1992, market opened and sinking where grow more has invested and bears wanted to turn there losses into profits after
the free fall RBI has set up the enquiry committee on his SBI account transactions where every manager and bank are in trouble
After the audit they came to know it is 5000cr Scam want to make it public for big attention. After a heated press conference btw
RBI Governor and press, Sucheta published an article about RBI governor which was huge hit. RBI Governor has asked help of
CBI to clean the system but CBI handle was in Swamji control.
CBI assigned Madhavan who was also called Bofors Madhavan. Sucheta with the help of RBI governor she broke the news of
NHB and Harshad Mehta. Again after the news market crashed. After everything he offered his holdings to CITI Bank but they
are not figured it out. After Janaki Raman report and Sucheta article they have arrested Harshad and Ashwin Mehta.
They have attached assets and Ketan made Ashwin to sign them and he sold some of the shares for his personal benefit. Madhavan
has been removed by CBI chairman, he handled later on but many cases in 1 file you can see 7 FIRs in it this is very new to
everyone. From Delhi there are many orders to threaten and attach him as many cases as possible. After all these matters at
custodian numbers aren’t matching and again Harshad went behind the bars this time he is no more. He is in jail for 107 days.