Ketan Parekh is a former stock broker from Mumbai, India, who was convicted in , for involvement in the Indian stock market manipulation scam that. 12 Mar Presentation on KETAN PAREKH Scam. 1. Presented by: Vasu ruthvick Preetish Dhulshetti Somnath benarjee INTERNATIONAL SCHOOL OF. 9 Sep Ketan Parekh was threatening to sue the Bank of India for defamation, because it complained about the bouncing of Rs billion pay orders.

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Though Parekh was subsequently barred from stock trading, the Securities and Ketan parekh scam Board of India alleged in that a variety ketan parekh scam companies and other actors were trading on behalf of Parekh. Retrieved 27 May Stock and bull story”.

Ketan parekh scam Parekh used this modus operandi repeatedly for 10 stocks which he had picked. He did not prekh on his account but instead instructed other brokers to hold securities and paid them a commission to do so while making good any losses that they might have accrued on the position. Please reference authorship of content used, including link s to ManagementStudyGuide. This resulted in a stock market crash the next day, resulting in large scale losses for large institutional investors, including insurance companies and mutual funds.

2001-Ketan Parekh scam: Stock and bull story

He invested heavily in scak related to IT, media and ketan parekh scam and propagated them. Also, he had been sentenced to one year rigorous imprisonment for his economic crimes.

This resulted in steep hikes in share prices for example: Ketan Parekh is a former stock broker ketqn MumbaiIndiawho was ketan parekh scam infor involvement in the Indian stock market manipulation scam that occurred from late to To make the shares more attractive to investors, he was found to have roped in the Australian magnate Kerry Packer to acquire a 10 per cent stake and enhance its ketan parekh scam.

There have been rumors in the Bombay Stock Exchange that Ketan Parekh still continues trading from a network of unnamed corporations. Retrieved 7 May Pqrekh cover stories emerged in the financial media of his malpractices related to the stock market, scrutiny shifted to his activities leading to his arrested on 30 March The lack of regulation sczm this exchange provided kwtan flexibility to Mr Parekh.


This resulted in Parekh’s first conviction, which carried a one-year sentence, coming as a result of a transaction he conducted involving a unit of Canara Bank in The RBI commenced an investigation against Parekh. Ketan parekh scam people Businesspeople from Mumbai Indian stock traders. Retrieved from ” https: Ketan parekh scam, in his demeanor he was nothing like Mr Mehta. These stocks came to be known as the K stocks and the market always seemed to be bullish about the future of these stocks.

Ketan Parekh Scam and it’s Impact on Financial Institutions

To Know more, click on About Us. He was said to be a believer of the Information, Communication and Entertainment sector i.

However, in reality, Ketan Parekh was looking out for stocks ketan parekh scam had a low market capitalization and low liquidity. This can be seen as insider trading and by itself was enough to get Ketan Parekh into severe trouble.

Ketan Parekh – Wikipedia

The loans would be sanctioned first and the collateral would be collected a few days later making the loans unsecured for the interim duration.

However, the extent to which such actions can stop the activities of Ketan Parekh is yet to be ascertained.

Ketan parekh scam, it seemed to appear that the stocks Ketan Parekh was picking were growing because of their fundamentals. Thus in just a few months, scrips of virtually unknown companies like Visualsoft rose from Rs to Rs 8, per share and Sonata Software rose from Rs ketan parekh scam to Rs 2, Panicking, Parekh sold off his entire ownership of the so called K stocks that he had successfully jacked up over the past two years, especially those of two entities – GTB bank and Sacm bank.

Then, the bank basically started making unsecured loans to him. At the height of his success Ketan Parekh was friends with international celebrities like Kerry Packer ketzn both ketan parekh scam them had together started a venture capital with the intent of funding start-ups in India.


Around the same time, a bear cartel of brokers in Mumbai opposed to Parekh tried to dump their shares of K stocks. In the ketan parekh scam, he came in contact with Harshad Mehta, a well known stock broker and subsequently joined Mehta’s firm GrowMore investmentsa firm that Mehta had set up and which was involved in the Indian stock market ketan parekh scam.

The average person on the bourses may begin to believe that his stocks were rising and they too would start investing driving the prices even higher.

He would take the market by storm and raise or drop the prices of stocks in an instant by suddenly unleashing lots of money in the market. From Wikipedia, the free encyclopedia.

By using this site, you agree to the Terms of Use and Privacy Policy. Ketan Parekh had a cover story to back his unscrupulous dealings and throw ketan parekh scam off track. At first, the bank crossed its prescribed limits to lend against market securities as ketan parekh scam extended credit to Ketan Parekh. Retrieved 24 April He has been prohibited from trading in the Bombay Stock Exchange for 15 years i. Then, as the market took over Ketan Parekh would liquidate his holdings slowly, once again ketan parekh scam less noise than his mentor Harshad Mehta would have done.

Inthe regulators initiated a probe into this and many companies were barred from trading in the exchange. Retrieved 30 January Parekh began cultivating friendships with people in Bollywood including Amitabh Bachchan and the diamond merchant Bharat Shahthus coming into the media’s eye and limelight.