one of the Indian major scams "Harshad mehta" scam.

1. JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITY KAKINADA
SCHOOL OF MANAGEMENT STUDIES
Business Ethics and Corporate Governance
Harshad Mehta Scam in India 1992
Presented by:
Keerthi Pinipe
18021E00

2. Harshad Mehta
Born : 29 July 1954, Rajkot
Died : 31 December 2001, Mumbai
Profession: Stock Broker
Education : Bachelor of Commerce

3. Origin of the scam
 The Two Markets:
Market for Corporate securities
Market for government securities
 Desperation of banks :
In 1990’s banks were struggle to make because of
1. Market Funds
2 portfolio management services

4.  The Massive Diversion:
In one year, he had driven the Sensex i.e. the index of the
Bombay Stock Exchange from 1000 to 4500.
It was an unprecedented bull run, never seen in the history of a
conservative Indian market.

5. Modulus Operandi
Borrower
Bank
Lender
Bank
Brocker:
Harshad
mehta
Issue fake BR
Funds

6. Exposure of Securities scams
• The Harshad Mehta scam was discovered when attention was
paid to the money missing from the government securities
market.
• On April 23,1992 journalist Suchetha Dalal, The Columnist in
Times Of India exposed the scam.

7. IMPACTS
• Mehtha had by then swindled the banks of a staggering
4000 Cr.
• Bribery case on P.V. Narasimha rao
• Holding banks of fake BR had to face losses
• BR was removed by RBI
• Chairman of Vijaya Bank committed suicide.
• Some investors were heavily leveraged and as a result
committed suicide as a result of the fallout.

8. Regulatory Actions
• He was later charged with Z2 crimal offences and more
than 600 civil action suits ware filed againist him.
• He was arrested on november 1992 and banished from
stock market.

9. References:
• https://www.managementstudyguide.com/harshad-mehta-
scam.htm