Harshad Mehta was a stockbroker born in 1965 in India. In the early 1990s, before markets were liberalized, he exploited loopholes in the system of "ready forward" deals between banks. He persuaded two banks to issue fake receipts for government securities and used the money to purchase shares. By the time the scheme was exposed, he had made large profits. However, it significantly impacted the stock market and small investors. Mehta was later arrested and died in jail in 2001 while facing over 600 civil and criminal cases related to the scam.

2. Early life
Born 29th July 1965
 Place Paneli Moti Gujarat,India
Occupation Businessman,Stoke broker

3. SCENARIO
 BEFORE LIBERLISATION BANKS WERE NOT
ALLOWED TO TRADE IN EQUITIES
 IN 1990 GOVT ISSUED NOTIFICATIONS TO BANK
TO MATAIN CERTAIN AMOUNT OF MONEY IN
GOVT SECUTRIES
 SO BANKS ALWAYS IN SERACH OF OTHER BANKS
WHO CAN SELL SECURITES TO THEM
 BUT THE DEAL WILL BE STUCK BY BROKER
 HERE HARSHAD MEHTA COMES INTO SCENE

4. MECHANISM
 READY FORWARD DEALS ARE THE CRUCIAL
MECHANISM THROUGH WHICH FRAUD
COMMITTED
 READY FORWARD DEALS ARE SHORT TERM
SECURED LOANS
 WHICH BANK TAKE IT FROM OTHER BANK

5. READY FORWARD DEAL
IN READY FORWARD DEALS ,SECURITES NOT
MOVED BACK AND FORTH ACTIVITY INSTEAD
THE BROKER ,THE SELLER OF THE SECURITES
GAVE THE BUYER BANK RECEIPT OF SECURITES.

6. SETTLEMENT PROCESSOR
IN THE SETTLEMENT PROCESSOR THE BUYER AND
SELLER DNT EVEN KNOW EACH OTHER WHOM
THEY HAVE TRADED WITH EITHER BEING
KNOWN ONLY TO THE BROKER.

7. FRAUD COMMITED
 KNOWING THIS SYSTEM MEHTA KNOWS THE
LOOPHOLES OF THIS SYSTEM
 BEING A BROKER MEHTA PERSUADED TWO
BANKS TO ISSUE FAKE BANK RECEIPTS OF GOVT
SECURITES.
 SO THAT HE CAN PAWN IT TO OTHER BANKS
 AND HE ALSO PERSUADED BROWWING BANKS
TO WRITE CHECK ON HIS NAMES

8. TWO BANKS ISSUED FAKE BR
 THE KARAD URBAN CO.OP BANK LTD
 METRO POLTICAN BANK

9.  AFTER REVCING MONEY FROM BANKS HE
INVESTED THAT MONEY INTO STOKE MSRKET
 HE INVESTED IN ABOUT 90 COMPANIES
INCULDING ACC,STERLITE AND VIDEOCON
 SHARE PRICE OF ACC IS 200 PER SHARE HE TOOK
TO 4400 PER SHARE
 MAKING A ASTONISHING PROFIT OF 4400%
 AND BY THE TIME OF RETURNING OF MONEY TO
BANKS HE SOLD THE STOCKS GIVE BACK THE
MONEY TO BANK

10. EXPOSED
 EXPOSED BY SUCHETA DALA

11. CONSEQUENCES
 STOCK MARKET CLOSED FOR 28 DAYS
 IT EFFECTS SMALL INVESTORS AND BANK FACES
LOSSES OF 4000CR
 INDIA JUST BEGAN THERE LIBERLISATION THIS
IMPCTED THE FDI IN 1992
 VIJYAYA BANK CHAIRMAN COMMITED SUCIDE
BEC UASE OFNTHE FEAR OF GETTING EXPOSED

12. AFTERMATH
 ARREST BY CBI FOR BUYING SHARES IN
90COMPANIES
 NUMBER OF SHARES 2.8 MILLION
 72 CRIMIAL OFFENCES
 AND OVER 600 CIVIL SUITS
 Harshad mehta also made a statement that he paid rs
1cr to narishma rao current pm of india to get out of
this scandal

13. Death
 Death in jail in 2001