Harshad mehta scam 1992

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