1) Several major scams have impacted the Indian capital market, including the Harshad Mehta scam in 1992, CR Bhansali scam in 1996, Ketan Parekh scam in 2001, Satyam scam in 2009, Sahara scam in 2010, and NSEL scam in 2013.
2) These scams involved various fraudulent activities like circular trading, insider trading, falsifying accounts, and offering commodities that did not physically exist.
3) In response to these scams, reforms were implemented like strengthening bank regulations, introducing a rolling settlement system, shortening the stock trading cycle, banning badla system, and establishing strict corporate governance laws.
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
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
ahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
SEBI in return ordered Sahara's two companies to stop issuing the said bonds and return money to investors. Sahara contested the case in various courts which eventually came to Supreme Court of India. On June 14, 2012, (during the final hearing of the case), the group had provided details of its financials up to April 30, 2012. While the court reserved its order, Sahara claims that it has already paid to 93% of the investors and discharged its OFCD liability to the tune of Rs. 23500 crores and only around Rs. 2260.69 crores are left against which Sahara has already deposited more than Rs. 12,000 crore which has with interest swelled to Rs. 16000 Crore. By August 31, 2012 the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by August 30, 2012 the final order. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability.
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.
Created By: Chirag Singla Student B.com(CA)
In that Powerpoint Presentation
~ Meaning of Capital Market, Different Types of Financial Instruments
~ Role and Functions of Capital Market.
~ Types of Capital Market, i.e. Primary Market & Secondary Market
~ Primary Market
~ New issue Market
~ E-IPO
~ Secondary Market and its produv
~ Process of trading
~ Difference Between Primary And Secondary Market
~ SEBI (Securities Exchange Board of India)
~ Regulation of Stock Exchange
~ Ministry of Finance
~ Governing Body
~ Regional Stock Exchange in India and News Channels where the Stock Prices on Tv.
By this above description the Powerpoint Presentation is ended
ahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
SEBI in return ordered Sahara's two companies to stop issuing the said bonds and return money to investors. Sahara contested the case in various courts which eventually came to Supreme Court of India. On June 14, 2012, (during the final hearing of the case), the group had provided details of its financials up to April 30, 2012. While the court reserved its order, Sahara claims that it has already paid to 93% of the investors and discharged its OFCD liability to the tune of Rs. 23500 crores and only around Rs. 2260.69 crores are left against which Sahara has already deposited more than Rs. 12,000 crore which has with interest swelled to Rs. 16000 Crore. By August 31, 2012 the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by August 30, 2012 the final order. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability.
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.
Created By: Chirag Singla Student B.com(CA)
In that Powerpoint Presentation
~ Meaning of Capital Market, Different Types of Financial Instruments
~ Role and Functions of Capital Market.
~ Types of Capital Market, i.e. Primary Market & Secondary Market
~ Primary Market
~ New issue Market
~ E-IPO
~ Secondary Market and its produv
~ Process of trading
~ Difference Between Primary And Secondary Market
~ SEBI (Securities Exchange Board of India)
~ Regulation of Stock Exchange
~ Ministry of Finance
~ Governing Body
~ Regional Stock Exchange in India and News Channels where the Stock Prices on Tv.
By this above description the Powerpoint Presentation is ended
NISM STUDY MATERIAL FOR NISM DOCE EXAM. NISM MOCK TEST AT WWW.MODELEXAM.IN. DEPOSITORY OPERATIONS CERTIFICATION EXAMINATION STUDY NOTES.BASED ON LATEST SYLLABUS,EASY TO LEARN,CONCISE,USEFUL TO PASS.NATIONAL INSTITUTE OF SECURITIES MARKETS EXAM IN DEPOSITORY OPERATIONS.NISM,AMFI,NCFM MOCK TEST AT WWW.MODELEXAM.IN
Capital Market: Components & Functions of Capital Markets, Primary & Secondary Market Operations, Capital
Market Instruments - Preference Shares, Equity Shares, Non-voting Shares, Convertible Cumulative Debentures (CCD),
Fixed Deposits, Debentures and Bonds, Global Depository receipts, American Depository receipts, Global Debt
Instruments, Role of SEBI in Capital Market.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
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Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
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Scams in indian capital market and reforms based on that scams
1. Scams in Indian Capital Market and
Reforms based on that Scams.
Presented By- Bhoomi Detroja (19SOMBA21003)
2. INTRODUCTION
• A good capital market is essential pre requisite for industrial and
commercial development of a country credit is required and
supplied on both short term and long term basis. The money
market caters to the short term needs only. The long term needs
are met by the capital market. Capital markets channel the wealth
of savers to those who can put it to long-term productive use,
such as companies or governments making long-term
investments.
• Examples of highly organized capital markets are the New York
Stock Exchange, American Stock Exchange, London Stock
Exchange.
3. Capital Market
• The term capital market refers to the institutional arrangements
for facilitating the borrowing and lending of long term funds..
it may be defined as an organised mechanism for effective and
efficient transfer of money capital or financial resources from
the investing parties to the entrepreneurs engaged in industry
or commerce.
4. WHAT IS CAPITAL MARKET SCAM
• It is bascially the fraud done in the capital market with the
investors by manupulating the facts in order to attain enormous
profits..
• Frauds mostly done with :
1) Retail Investors
2) Financial Institutions
3) Banks
6. 1) Harshad Mehta Scam
Scam by : Harshad Mehta
Time period : 1992
Amount : 4000 cr.
Known as : Big Bull
7. Summary of Scam
• Took advantage of weak financial services regulation and loop
holes in banking system. By help of bank employees to get
fake Bank Receipt and Used that money to raise stock price in
market for personal gain.
8. 2) CR Bhansali Scam
Scam by : Chain Roop Bhansali
Time period : 1996
Amount : 1200 cr.
Known as : CRB Scam
9. Summary of Scam
• He first launch finance company named CRB capital market
followed by CRB mutual fund and CRB custodial services
modus operandi of this scam. He was collecting money from
public by fixed deposits bonds and debentures and transfer
those money in company never exist (Dummy Company).
10. 3) Ketan Parekh Scam
Scam by : Ketan Parekh
Time period : 2001
Amount : 800 cr.
Known as : Bombay bull
11. Summary of Scam
• He involved in malpractices and circular trading in selected
stock we have borrowed money from bank to manipulate share
prices and gain profit from those stocks.
• He involved in insider trading, by this he easily manipulate
investors mind. He was found involved in cheating with banks
by misrepresenting facts, falsifying accounts, ripping-off the
stock market prices and exploiting investors’ decisions,
mishandling public money, bribing company directors to
enable him to do insider trading.
12. 4) Satyam Scam
Scam by : Ramalinga Raju
Time period : 2009
Amount : 7000 cr.
Known as : Satyam Scandal
13. Summary of Scam
• The biggest corporate scandal
• The top management software company named satyam done
inappropriate changes in accounts to show inflated sales profit
and margins from market shares in between the time period of
2003 to 2008.
14. 5) Sahara Scam
Scam by : Subrata Roy
Time period : 2010
Amount : 24,029 cr.
Known as : SS Scam
15. Summary of Scam
• Issued bonds of 29.6 million investors without following SEBI
norms and regulation as well as investor protection measures
given by SEBI in regulation they ignored it too.
16. 6) NSEL Scam
Scam by : Jignesh Shah, Shreekant Javalgekar
Time period : 2013
Amount : 5,500 cr.
Known as : National Spot Exchange Ltd
17. Summary of Scam
• They offered commodity that only exist on paper not exist
physically at all. Procured money from investors by contract
on commodities. They attract investors by offering fixed return
on pair the contract of commodities
19. Harshad Mehta Scam
After Harshad Mehta scam made changes made by Sebi was :
1) Strong bank regulations made by regulatory authorities.
2) BR removed by RBI
3) Securities law amendment act 1995 was bought in.
4) Rolling settlement system made compulsory
20. CR Bhanshali Scam
SEBI prevent over half dozen mutual funds from floating MF
schemes.
Issued Merchant banker’s showcause notice for various
irregularities and breach of regulations.
21. Ketan parekh Scam
Trading cycle was cut short from week two days (T+2)
Carry forward system in stock trading called BADLA was
banned.
Introduced forward trading in the form of exchange traded
derivatives.
Withdrew broker control over stock market
22. Satyam Scandal
Strict civil and criminal laws
Rotation of auditors in every five years
Introduce serious fraud investigation office
Adoption of international financial reporting standards.
As per Companies Act 2013, independent directors constitute
at least 1/3 of board of directors in every public limited
company
23. Sahara Scam
SEBI made SEBI investor protection and education fund
regulation 2009 to safeguard investors from frauds.
Sahara scam lead SEBI to a change in the law, making the
rules of issuing shares and debentures clearer.
SEBI shall constitute an advisory committee for
recommending investor education and protection activities that
may be undertaken by directly board or through any other
agency.
24. NSEL Scam
Government done changes in forward contract regulation act
after NSEL scam.
Government withdrew exemption granted to all sport
commodities exchange for launching one day forward contract
in agriculture and non agriculture item with immediate effect.
25. Conclusion
As we saw the scammers knew the loop holes in banking
system as well as they know how to exploit those
loopholes, they were d smart enough to manipulate stock
prices and the regulatory system. frequent amendments
that come every year in the SEBI Act and Regulations.
Although the occurrence of stock market scams and
corporate scandals has reduced subsequent to the
establishment of SEBI, but hasn’t completely stopped.