Ketan Parekh Scam Of 2001

1. Ketan Parekh Scam Of 2001 The stock market scam that took place in 2001 was created by Ketan Parekh. He was referred to as the "One Man Army" or "Pentafour Bull" of the Indian stock market before the scam came to light because the stocks he invested in would soar, and investors would follow his recommendations without question. On some of the stocks he manipulated during the scam, Ketan Parekh even produced a 200% annual return. Ketan Parekh, a Chartered Accountant by training, began his professional career managing the brokerage business run by his family, NH Securities. Later, he joined his mentor Harshad Mehta, following in his footsteps. In addition to working as a promoter for one of Harshad Mehta and Ashwin Mehta's businesses, Parekh learned the stock market's tricks and trades from his mentor Harshad Mehta. According to the reports by SFIO (Serious Fraud Investigation Officer), KetanParekh scam amount was worth around 40,000 crores. At his peak, Ketan Parekh was friends and business partner with famous media mogul Kerry Packer to start a venture capital firm where they would fund budding Indian start-ups.  

2. Ketan Parekh Early life and Family And His Role In Scam 1992 Ketan Parekh age is 60 years old, who was born in 1963 into an upper middle class family that included stockbrokers and chartered accountants. He was fascinated by the stock market after watching his father trade stocks. After earning his CA, he started working for his family's stock brokerage firm before joining Harshad Mehta's business, GrowMore. Mamta Parekh is Ketan Parekh's wife, and they have two daughters together. Since she was one and a half months old, one of Ketan Parekh's daughters has had postviral encephalitis. It is said that the family relocates frequently so that she can receive treatment in various nations. Ketan Parekh played a part in the 1992 scam, as stated in the sources, but this was not mentioned in the web series.Harshad Mehta's ascent inspired Ketan Parekh, who joined GrowMore in the early 1990s. KetanParekh managed to flee when the 1992 scam was discovered, but his involvement in the fraud was revealed in 2001 when his own fraud was discovered.Ketan was found guilty in 2008 and given a one-year prison term for his involvement in the 1992 fraud. During the 1992 scam, he was found guilty of stealing public funds totaling Rs. 48 crore from a Canara Bank branch.

3. How Ketan Parekh executed the scam? Parekh used both public funds and capital from powerful corporations to shoot the prices of the stocks, which was also a little different from other methods of fund raising. Parekh served on the boards of Global Trust Bank and MMCB, and he used his influence to get sizable loans secured by his shares from the banks. According to RBI regulations at the time, banks could only loan up to 15 crores to a stockbroker, but Parekh bought off bank employees to receive loans from MMCB and GTB totaling 800 crores and 100 crores, respectively. He also tricked MMCB into giving one of his businesses a payment order worth Rs. 137 crore. A pay is a financial instrument that a bank issues to direct another bank to make a specific payment to a third party on behalf of the paying bank's client. But in truth, he never made such a deposit with MMCB. As it will increase the net worth of those traders whose money is invested in the company and will also help Parekh book profits after squaring his position after shooting up the prices, Parekh also accepted sizable sums of cash from company promoters to shoot up the prices of their stock.