Harshad mehta scam india compilation
Now, he puts both parties transaction on hold asking for some time to search for a buyer and a seller. Market bulls like Mehta and their enemies, market bears, alike played the game. He had a sea facing house of about 15k sq ft where he had his private Golf course, swimming pool, and others.
With the country's largest lender, State Bank of India, acting as financier, he not only took on the older players in the bond street but simultaneously pushed up stocks to levels unheard of.
Biggest stock market frauds in india
Pherwani quit; he died some weeks later. Having figured this out, Mehta needed banks, which could issue fake BRs, or BRs not backed by any government securities. The price of shares in the cement company eventually rose from Rs. As Times and others publications, including Indian Express and India Today fol-lowed up that newsbreak, there emerged ever newer dimensions that would surely have earned the appreciation of even Wall Street's hardened loophole pirates. Every receipt by an assessee cannot be termed as taxable income. The bourse had to resort to unconventional means like opening the trading system at midnight to bail out brokers by nullifying trades. Just one crore? In June he held a press conference in Mumbai, his brothers and star lawyers Ram Jethmalani and his son Mahesh in tow, to announce that he had met Prime Minister Rao on November 4, at the prime ministerial residence, and handed him Rs 1 crore. And surely, the Prime Minister's office knew what the Finance Ministry was doing? In this case, he earns commision from both the parties and also the money to buy the bonds. The RF is in essence a secured short-term typically day loan from one bank to another. That is, the seller handed over the securities to the broker, who passed them to the buyer, while the buyer gave the cheque to the broker, who then made the payment to the seller.
What exactly exploded in Aprilthat year of explosions from which India is yet to recover? Incredibly, even National Housing Bank, a subsidiary of Reserve Bank of India-which, ironically, claimed it was conducting its own investigations into banking capers-was convinced by Mehta to part with BRs.
These banks were willing to issue BRs as and when required, for a fee," the authors point out. He led a pack of brokers and investors to nearly quadruple the Bombay Stock Exchange's Sensitive Index within a year to 4, by Aprila feat since-thankfully-unmatched.
1992 stock market crash
These banks were willing to issue BRs as and when required, for a fee," the authors point out. Then, and later, a large sand-coloured suitcase was shown to the media: the presumably guilty carrier. They had gathered a few months ago to discuss ways to revive the bond market, which was yet to heal from the scar left by the '92 securities scam. Standard Chartered's Indian operation is a prime example. And during this holding period, he invested the whole money into the stock market to earn more than he invested. Peoples are so restless to make an investment for a longer time to have better returns. Frauds happened when banks, under the spell of Harshad and his followers, started issuing BRs with no proper security to back up. Meanwhile, the finger-pointing continues.
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