harshit mehta scam(1) (1)
TRANSCRIPT
PRESENTED BY:
BLUE QCEAN FINANCING
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INTRODUCTION From Gujrati jain family, childhood was spent in
Mumbai
First job: Dispatch clerk in the New India Assurance Company
During his work , started investing in stock market with his brother Ashwin Mehta
Managed to get BSE broker’s card
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THE RAG TO RICHES STORY
Started his career with New India Assurance co.
Quit his job in 1981 to become a sub-broker. Went bankrupt in 1982 & recovered soon to become more stronger.
Went on to become the one most successful broker –thereby earning the nick name of “THE BIG BULL”
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Became a Prominent Name
Started buying shares heavily since early 1990
The shares which attracted his attention were:
Associated Cement Co. (ACC)
Apollo Tyres
Reliance
Tata Iron and Steel Co. ( TISCO )
BPL
Sterlite
Videocon
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ABOUT THE SCAM
Diversion of funds
Use of Ready Forward(RF) to maintain SLR(statutory liquidity ratio) creative Accounting Intra-day Trading
The Ready Forward is in essence a secured short-term (typically 15-day) loan from one bank to another.
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Growing Stage Of ‘BIG BULL’ Exploiting the loop hole in the Banking system
HARSHAD MEHTA’s trademark style:
a) He used to study Fundamentals
b) Buy in big quantity
c) Then make it public
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AT MATURITY STAGE Here, the Boss of Growmore Research and Asset
management
He lived almost like celebrity in a 15000 sq. feet house
Also had a crush for flashy luxurious cars
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DECLINING STAGE In 1992, first article came out against THE BIG BULL
and the story was about 600+ crores rupees scam from SBI…..
He used “Ready Forward deal” for this scam
As per Indian Law, it was not allowed to give such RF loan to any individual person by bank
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CONTD.. The bear cartel has exposed the truth behind the
constant rise of this BIG BULL
Headline of Indian newspaper regarding 4000 crores rupee scam in Indian Stock Market
Bear cartel was behind HARSHAD MEHTA now they filed as many cases as they can against Harshad Mehta
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CONSEQUENCES BR value became ZERO
Crash of Financial Institution
Many suicidal notes were found near dead body of Indian Stock Traders
In 4000 crores scam, many Financial firms, many political parties and many big names were involved, but surprisingly only one man was trapped
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STEPS TAKEN BY SEBI SEBI restricted Harshad Mehta from dealing in securities
Investigation completed in two phases :
FIRST PHASE: SEBI suspended the 17 brokers and sub-brokers for 1 to 3 years. They were responsible for manipulations in the scripts
SECOND PHASE: The president of BSE told to resign from his office. And it started hearing in quasi-judicial manner., after inspecting the documents and hearing of witnesses
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END OF THE BIG BULL LATE 2011, place THANA jail, the jail superintended
came to know about end of the BULL era with news of HARSHAD MEHTA Death
Reason was HEART ATTACK, but it was shocking to know that before he died he was proved innocent in all cases against him
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Moral Of The Story……
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