The document summarizes the Harshad Mehta stock market scam that occurred in India in 1992. It describes how Harshad Mehta, a stockbroker, exploited loopholes in the banking system to siphon off funds and use them to artificially inflate stock prices. When the scheme was exposed, it collapsed the stock market and caused major losses. The scam exposed weaknesses in market regulation and internal bank controls. It led to reforms by the securities regulator SEBI, including imposing additional margins.
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 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.
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 presentation about frauds those took place in financial giants and top most companies of the world during decades. This presentation will be helpful for students information.
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 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.
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 presentation about frauds those took place in financial giants and top most companies of the world during decades. This presentation will be helpful for students information.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
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.
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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.
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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.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
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.
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
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
4. SCAM
obtaining money by means of
deception including fake
personalities, fake
photos, fake template
letters, non-existent
addresses and phone
numbers, forged documents .
5. BOTH GAINED
POPULARITY FOR
Capital market scam?
It is basically fraud done in
the capital market with the
investors by manipulating
the facts in order to attain
enormous profit
6. Capital market?
The market for securities
where companies and govt.
can raise long term funds
Itincludes stock market
and the bond market
8. HARSHAD MEHTA- story
was an Indian stockbroker.
is alleged to have engineered the rise in
the BSE stock exchange in 1992
Exploiting several loopholes in the
banking system, 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.
9. litigations still pending against
him
When the scheme was
exposed, banks started
demanding their money
back, causing the collapse.
Mehta died in 2002 with many
litigations still pending against
him
10. Contd….
his Favourate stock
included
Tata iron
and steel reliance -ACC
company
- apolo tyres Videocon - BPL
12. Introduction
C.A by profession comes from broking
family background.
Popularly known as pentafour bull.
Ketan parekh is a former stock
broker from Mumbai,india
He was convinced in 2008,for
involvement in the indian stock
market manupulation scam in late
1999-2001. currently he has been
debarred from trading in the indian
stock exchanges till 2017
13. HOW HARSHAD AND KETAN
RELATED TO EACH OTHER
The story is quit similar only the star
cast has changed .In 1992 scam it was
harshad mehta now its ketan parekh.
Both are big bulls
Bothbig bulls use to buy stocks at
rock-bottom prices and push it up
14. Althoughboth are of gujarati origin
ketan parekh , his father and
grandfather were also traders in the
stock market but HM had no such
background
Inboth these scams banks were involved
in the HM scam was related to bankers
receipt while it was pay orders in ketan
parekh scam
15. In HM scam foreign banks including city
bank,standard charter and ANZ grindlays
were involved and In ketan parekh scam
foreign instituional investors including
credit suisse first boston and JM Morgan
stainlay were invovled
in HM scam state bank of india suffered
the loss of 660 crores while ketan owes
around rs. 130 crore to bank of india
16. The Mechanics of the
Scam
3 STEPS INVOLVED
1) The settlement process in the govt
securities market become broker
intermediate that is delivery and
payment started getting routed through
a broker instead of being made directly
between the transacting banks
17. 2) The broker through whom the payment passed
on its way from one bank to another found a
way of crediting the money into his account
though the account payee cheque was drawn in
favor of bank
3) While the 2 steps transformed an RF deal
from a loan to a broker, it would still be a
secured loan. However, the brokers soon found
a way of persuading the lending bank to
dispense with security for the loan or to accept
worthless security
18. HOW HARSHAD
MEHTA SCAM IS
EXPOSED
On april 23 1992 journalist
sucheta dalal exposed mehta‟s
illegal methods in „TIMES OF
INDIA‟
The crucial mechanism through
which the scam was affected was
ready forward(RF) deal.
19. Anotherinstrument used was the
bank reciept
Thetwo main banks who were
handy for this purpose were bank of
Karad(BOK) and metroplitian
co-operative bank
20. Once the scam was exposed a
lot of baks were left holding
BRS which did not have any
value
Afterthe scam was reveled
the chairman of vijaya bank
committed suicide.
21. Steps taken by SEBI in
response to the scam
Due to the alleged inside a tradingn bombay
stock exchange have been suspended. In
order to prevent misuse of sensitive
information by broker director, stock market
will be coporite soon.
SEBI has imposed an additional 10%
volatility margin on all the A-group shares
and additional margin stocks in automatic
lending and borrowing mechanism(ALBM)
and borrowing and lending of securiti
scheme(BLESS)
22. The SEBI has also imposed volatility
margins on net outstanding sale position
of FIIS(financial institution,banks and
mutual funds)
In order to increase liquidity,SEBI has
allowed banks to offer collateralized
lending only through BSE and NSE
On march 8,2001, the SEBI banned short
sales.In simple words,it means that all
short sales have to be covered by an
equal amount of long purchases.
24. Now since Harshad Mehta was dealing with
many banks at the same time he could then
keep some capital with him at all times. For eg.
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. 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.
25. The internal control system of the
commercial bank system involves the
following features
1) separation of functions:- The
aspects of securities transaction of a
bank, namely dealing custody and
accounting are carried out by
different person
26. The SEBI has also imposed volatility
margins on net outstanding sale position
of FIIS(financial institution,banks and
mutual funds)
In order to increase liquidity,SEBI has
allowed banks to offer collateralized
lending only through BSE and NSE
On march 8,2001, the SEBI banned short
sales.In simple words,it means that all
short sales have to be covered by an
equal amount of long purchases.
27. 2)Counter party limits:-The moment
an RF deal is done on the basis of a
BR rather than actual securities the
lending bank has to contend with the
possibility that the BR received may
not be backed by any adequate
securities
28. OTHER ASPECTS OF
THE SCAM
There are several aspects of the scam
which are closely related to the
security markets, but which are
different from the operational aspects
of the markets
Change in prices of securities
On each occasion the coupon rate was
increased by 1/2 %.therby raising
from 11.5% to 13% during this ten
month period
29. Contd….
With a daily trade in volume of Rs
3000n to 4000 crores it would have
been very easy to take a
position(based on inside
information)of Rs 500 or Rs 1000
crores without anyone suspecting
anything untwo ward
30. Where has all the
fraud money gone?
Based on result of investigation and
reporting so far , the following are the
possibilities
1) Large amount of money invested in
shares
2) It is rumored that a part of money
was sent to the Havalarackent
, converted into dollar pounds and
brought back as India development
bonds
31. A part of money must have been spent as bribes and
kick backs to the various accomplishis in the banks
and possibily in the bureaucracy and in political
system
A part of money might have been used to finance the
losses taken by the brokers to window dress various
bank balancesheets
32. IMPACT OF THE
SCAM
The immediate impact of the scam
was a sharp fall in the shares prices .
The index fell from 4500 to 2500
representing a loss of Rs. 100000
crores in the market capitalization.
The government liberlisation policies
came under sever critism after the
scam with harshad mehta
33. Bowing to the political pressure and
the bad press it received during the
scam, the liberalization was put on
hold for a while by the government
SEBI postponed sanctioning of
private sector mutual fund