Scam 1992 Harshad mehta scam pdf download

Harshad mehta scam scam 1992 pdf download

1. INTRODUCTION The Scam 1992: The Harshad Mehta Story (Web Series) Provides the information about the Backstory and Details of the 1992 Scam Done by Harshad Shantilal Mehta. The Series tells us about how he started his journey to become the “ Big Bull”. The series potraits How From Being a middle class man he became one of the richest man in India With Over 475 Million Net Worth, Roughly 3,542 Crores in 1992. The series explains us how Harshad mehta Manipulated the Stock Market. How he Found the loop holes in the Share market and Banking System and used them.

2. Who is Harshad Mehta? Harshad Shantilal Mehta was born 29 July 1954 , at Paneli Moti, Rajkot District, in a Gujrati family. He spent his childhood in Borivali , Mumbai , Where his father had a small Textile Business. He Completed his B.com in 1976 from Lala Lajpatrai College After completing B.com he did many odd jobs Including selling hosiery,cement and sorting diamonds and many more He worked as a sales person in the Mumbai office of New india Assurance Company Limited, During this time he got Interested in the Share Market and after few years he Joined a Brokerage Firm named Ambalal & So n In Early 1980s, He worked There as a Jobber for a broker named P.D. Shukla. In 1990, He had rose in the Indian Securities Industry, The Media Called him the “ Amitabh Bachchan of the Stock Market” In 1984, Harshad was a member of Bombay Stock Exchange.

3. Risk Hai To Ishq Hai At the Time when Harshad was working for a brokerage firm named Ambalal & Sons under a broker named P.D.Shukla. He thought Why Shouldn’t We Start Our Own Trading Account. And at 1984 Harshad Mehta opened his own Trading Account. After opening his trading account in 1984 he experienced significant success with the knowledge he had gained about the stock market in these few years. He quickly gained reputation for his stock market strategies and was becoming a successful trader. Until.... In the same year he lost 10 lakh rupees in stock market due to Market Crash . On October 19, 1984 . The Crash Was Called Black Monday. After the loss of 10 Lakh he decided to Open a Consultancy Firm.

4. GROW MORE After the Black Monday Market Crash Harshad was totally broken. And in 1990 Harshad decided to started a Consultancy Firm Named Grow More Research And Assest Management . After he started his Consultancy Firm he quickly started to gain reputation in the market He’s influence in the stock market was getting stronger and stronger. After his huge success in stock market he wanted to gain knowledge about the money market so Harshad stepped inside the money market with the help of maintaining good relationship with banks.

5. What is Money Market? The money market is a financial market dedicated to the short term funding needs for government, financial institutions and corporation. Money Market has Short term Maturities, High liquidity, Low Risk compared to long term securities. Harshad Mehta entred the money market by keeping good relationship with the banks For Eg: State Bank of India (SBI). He leaned about money market about how it works how it’s operated etc. He found some loopholes in the Banking system using which he started scaming the banks

6. How was the scam Executed Bank Receipts (BRs) : Harshad Mehta used fake Bank Receipts to borrow huge amount of money from other Banks . Those receipts showed that One Bank had deposited money into another bank but that was not true. He used that Money to buy Bulk of Stock Which made the Prices of the stocks increase. With the increased Price he sold them back at a significant profit . Small Banks: Harshad used small banks which attract less attention of the bank regulatorys. These banks were then used to get large amount of money for future use Cooperating With Banks : Harshad Mehta Cooperated ( Kept Good Relations ) with various Banks to carry out these transactions. He maintained these relationships with these banks to carry out his plan without getting caught.

7. Who Uncovered The Scam? The 1992 Harshad Mehta Scam was Uncovered by a Journalist Sucheta Dalal . She was a Financial journalist working for Times Of India at that time. Sucheta had been observing Harshad Mehta’s activities for some time, She noticed some anomalies in the stock market Which made her curious about Harshad Mehta’s actions in the Stock Market. And on April 23, 1992, Sucheta Dalal published an article in the Times Of India which told how Harshad Mehta found the loopholes in the Banking system to manipulate the stock market. She revealed that Harshad Mehta used fake Bank Receipts to obtain huge amount of money from banks. These funds were then invested into stock market, rising the prices of some specific shares.

8. END OF SCAM After Sucheta Dalal Exposed Harshad Mehta many things happened for e.g: Market Crash: after the expose the in 1992, The stock market crashed. The Bombay Stock Exchange (Sensex), which was at its peak crashed due to panic selling of stocks brought by the buyers. Which made the market unstable and at last made it crash. Investigations: The Reserve Bank Of India (RBI) And The Central Bureau Of Investigation (CBI) Launched an investigation on the scam. Many Banks and Financial Institutions were found guilty for their involvement in the scam.

9. After the Investigation was done Harshad Mehta was found guilty for the 1992 Scam. Harshad was arrested on June 1992 with other Bank officers and brokers who were involved in the scam. The Reserve Bank of India (RBI) made strict rules regarding the usage of Bank Receipts (BRs).

10. The Market Crash

11. Conclusion The 1992 Harshad Mehta Scam involved legal actions taken against Harshad Mehta who was found guilty in a massive securities fraud in India. He was charged with many financial crime like manipulation of stock market etc. The case led to his arrest and legal battles. Harshad Mehta passed away in 2001 before all legal issues were fully resolved. His story remains one of the most significant scandals in indian history.