Harshad Mehta was a famous Indian stockbroker who orchestrated a massive stock market manipulation and scam in 1992. He used loopholes in bank regulations to siphon money from banks and use it to artificially inflate stock prices. When the scheme was exposed, it caused a crash in the stock market that led to billions in losses and several suicides. Mehta was arrested and tried for over 9 years until his death in 2001 while still facing many charges. The scandal shook confidence in the Indian markets and prompted regulatory reforms.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
this ppt is about one of the biggest scam in india. mastermind behind the scam was Harshad Mehta who acted broker between the banks. he used banks money for trading purpose.
The Harshad Mehta Scam Exposed. The entire mechanism and who were the key parties involved, the aftermath and the effects of the scam on the stock market and the overall Indian Economy. The ethical issues involved and the action taken to prevent any such scams in the future by the government.
this ppt is about one of the biggest scam in india. mastermind behind the scam was Harshad Mehta who acted broker between the banks. he used banks money for trading purpose.
The Harshad Mehta Scam Exposed. The entire mechanism and who were the key parties involved, the aftermath and the effects of the scam on the stock market and the overall Indian Economy. The ethical issues involved and the action taken to prevent any such scams in the future by the government.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
2. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Mehta was famous for ripping higher profits from stock market
and trading, and for his famous financial scandal, worth of
5,000 crore (US$997.5 million) in Bombay Stock Exchange
(BSE), of 1992. He was tried for 9 years, until he died in the late
2001.
Let‟s see what and how he did it.
4. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
The banks in India have to maintain a particular amount of their
deposits in government bonds. This ratio is called SLR
(Statutory Liquidity Ratio).
In the early 1990s, each bank had to submit a detailed sheet of
its balance at the end of the day and also show that there was a
sufficient amount invested in government bonds.
5. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Now, the government decided that the banks need not show
their details on each day, they need to do it only on Fridays.
Also, there was an extra clause that said that the average %age
of bond holdings over the week needs to be above the SLR but
the daily %age need not be so.
6. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
That meant that banks would sell bonds in the earlier part of
the week and then buy bonds back at the end of the week.
The capital freed in the starting of the week could then be
invested.
Now, at the end of the week many banks would be desperate to
buy bonds back.
This is where the broker comes in.
7. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
The broker knew which bank had more bonds (called „plus‟) and
which has less than the required amount (called „short‟). He
then acts as the middleman between the two banks.
Harshad Mehta was one such broker. He worked as a middle
man between many banks for a long time and gained the trust
of the banks‟ senior management.
9. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Lets say that there are two banks A (short) and B (plus). Now
what Harshad Mehta did was that he told the banker at A that
he was dealing with many banks and hence did not know who
would he deal in the end with. So he said that the bank should
write the cheque in his name rather than the other bank (which
was forbidden by law), so that he could make the payment to
whichever bank was required.
Since he was a trusted broker, the banks agreed.
10. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Then he took the money from A and went to B and said that he
would pay the money on the next day to B but he needed the
bonds right now (for A).
But he offered a 15 % return for bank B for the one day
extension. Bank B readily agreed with this since the offer was
very lucrative
11. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Now since Harshad Mehta was dealing with many banks at the
same time he could then keep some capital with him at all
times.
Example: He takes money from A on Monday, and tells B that
he‟ll pay on Tuesday, then he takes money from C on Tuesday
and tells D that he‟ll pay on Wednesday and the money he gets
from C is paid to B and as a result he has some working capital
with him at all times if this goes on with other banks throughout
the week.
12. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
MON TUE WED
Money Money
for D Money Money
for F
from C from E
Money for B;
promises to
pay to B on
tue
Retains money of A for whole week as working capital
13. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
The banks at that time were not allowed to invest in the equity
markets.
Harshad Mehta had very cleverly squeezed some capital out of
the banking system.
This capital he invested in the stock market and managed to
stoke a massive boom.
14. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
He was buying shares heavily. The shares which attracted
attention were those of Associated Cement Company (ACC).
The price of ACC went up from Rs 200 to Rs 10,000.
15. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Since he had to book profits in the end, the day he sold was the
day when the market crashed.
The same day Vijaya Bank chairman committed suicide by
jumping from the banks‟ office roof.
The chairman knew that when it would become public that he
had written cheques in the name of Mehta, he would be dead
meat.
16. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Another instrument used was the Bank receipt (BR).
In a ready forward deal, securities were not moved back and
forth in actuality. Instead, the borrower, i.e., the seller of
securities, gave the buyer of the securities a BR.
A BR confirms the sale of securities. It acts as a receipt for the
money received by the selling bank. Hence the name - bank
receipt.
It promises to deliver the securities to the buyer.
It also states that in the mean time, the seller holds the
securities in trust of the buyer.
17. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Having figured out his scheme, Mehta needed banks which
issued fake BRs (Not backed by any government securities).
“Two small and little known banks - the Bank of Karad (BOK)
and the Metropolitan Co-operative Bank (MCB) - came in handy
for this purpose.
These banks were willing to issue BRs as and when required,
for a fee.
18. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Once these fake BRs were issued, they were passed on to other
banks and the banks in turn gave money to Mehta, assuming
that they were lending against government securities whereas
this was not really the case.
This money was used to drive up the prices of stocks in the
stock market.
When time came to return the money, the shares were sold for a
profit and the BR was retired.
The money due to the bank was returned.
19. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
This went on as long as the stock prices kept going up, and no
one had a clue about Mehta‟s operations.
21. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
crash on March 1, 2001 came as a major shock for the
Government of India, the stock markets and the investors alike.
Once the scam was exposed lot of banks were left holding BRs
which did not have any value - the banking system had been
swindled of a whopping 4,000 crore (US$798 million).
The panic run on the bourses continued and the Bombay Stock
Exchange (BSE) President Anand Rathi's resignation added to
the downfall.
Rathi had to resign following allegations that he had used some
privileged information, which contributed to the crash.
22. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
The scam shook the investor„s confidence in the overall
functioning of the stock markets.
By the end of March 2001, at least eight people were reported
to have committed suicide and hundreds of investors were
driven to the brink of bankruptcy.
23. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
This sudden crash in the stock markets prompted the
Securities Exchange Board of India (SEBI) to launch immediate
investigations into the volatility of stock markets.
SEBI also decided to inspect the books of several brokers who
were suspected of triggering the crash.
Meanwhile, the Reserve Bank of India (RBI) ordered some
banks to furnish data related to their capital market exposure.
24. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Mehta and his associates siphoned off funds from inter-bank
transactions and bought shares heavily at a premium across
many segments, triggering a rise in the Sensex.
When the scheme was exposed, banks started demanding their
money back, causing the collapse.
He was later charged with 72 criminal offenses, and more than
600 civil action suits were filed against him.
25. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
He was arrested and banished from the stock market with
investigators holding him responsible for causing a loss to
various entities.
Mehta and his brothers were arrested by the CBI on November 9
1992 for allegedly misappropriating more than 27 lakh shares
(Approx. USD 54,000) of about 90 companies, including ACC and
Hindalco, through forged share transfer forms.
The total value of the shares was placed at 250 crore
(US$49.88 million).
The two brothers have been granted temporary bail for five
days following the death of Mehta in late 2001
26. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Mehta again raised a furore in 1995 when he made a public
announcement that he had paid 1 crore (US$199,500) to the
then Congress President and Prime Minister, Mr P.V. Narasimha
Rao, as donation to the party, for getting him off the scandal
case.
28. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Mehta was under judicial custody in the Thane prison.
Mehta complained of chest pain late last night and was
admitted to the Thane civil Hospital.
He died following a brief heart ailment, at the age of 47, in
December 31,2001.
29. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
Mehta died on with many litigation still pending against him.
He had altogether 28 cases registered against him.
The trial of all except one, are still continuing in various courts
in the country.
30. Roshankumar S Pimpalkar
Email: roshankumar.2007@rediffmail.com
The Mehta scandal was portrayed in a Hindi movie “Gafla”.
It was premiered in Times BFI 50th London Film Festival.
31. IF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK
PLEASE FEEL FREE TO WRITE US AT
roshankumar.2007@rediffmail.com