Harshad Mehta is an Indian stock market broker who came into the limelight after the Indian Stock Market Scam of 1992. His full name was Harshad Shantilal Mehta.
This scam is one of the biggest scams India has ever witnessed.
powerful people and politicians are involved in this scam and this scam even put their hands on the Prime Minister of India at that time.
Harshad Mehta Family Background
Harshad Mehta born on 29 July 1954 at Rajkot district Gujrat,he belongs to Jain family.His father is a Textile Businessman .
He did B.com from Lala Lajpatrai College Mumbai in 1976.
when he worked as a Sales man in New india Assurance company Limited he get to know about stock market and after few day he left his job and join a brokerage firm.
Harshad Mehta 1992 Scam Explained
In this article we are going to understand this Scam in simple language with simple term .As i know many of us are not aware of Stock market as well as banking terms.
What he did was, he found a loophole in our banking system, and with the help of his experience and power, he managed to manipulate the stock market.
what he did he take a loan from a bank to put this money in the stock market and promised the bank to return the money at a higher rate. but when his due date came he took another loan from another bank and fully filled his previous loan. So by doing what he does he manipulates the stock price. Harshad Mehta tries to hit small banks as there is an ease of resources in small banks for him. This explanation is just an overview and I tried to tell you the whole scam in simple language.
when he manipulates the stock market. what he did was against the rule of SEBI and RBI.
for example He took the price of ACC stock from Rs.200 to Rs 9000, an increase of 4400%.when the stock at 200 he put all his money which he borrowed from Bank and suddenly the prize of the share increase.
When the share reached the Rs9000 mark, he pulls out his money so he gets the maximum profit, and then shares of that particular company get back to its original amount (i.e. Rs 200). So what he did he pump the prize of shares with wrong methods.
ALLEGATION ON Harshad Mehta
First of all he charged with the fake pump and dump of share like ACC.
Second, what he did he used to make false Bank Receipt, and on the basis of this fake bank receipt he used to withdraw money from banks and put the money in the stock market instead of giving it to the Bank.
OUTBREAK OF 1992 HARSHAD MEHTA SCAM.
Sucheta Dalal Reveals the Mehta scam,she is a journalist she exposed this Scam on 23 April 1992.
After so many trials which ran for many years. Finally Harshad Mehta got punished and sent to prison for 5 years. But during his prison day, he feels light chest pain and admitted in hospital and later died at the age of 47 years on 31 December 2001.
NEW WEB SERIES AND MOVIE ON THIS SCAM
Bollywood is looking more interesting because he made an OTT web series called “SCAM OF 1992 ” and also the movie is in the process where Abhishek Bachan plays the Role of Harshad Mehta. You should definitely watch the OTT series as it is available at MX PLAYER.