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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The low profile Ketan parekh scam stock market was suddenly once again making headlines all over the world. Views Read Edit View history. 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 MMCB pxrekh. However, in reality his associates paremh competitors describe him as being particularly shrewd and ruthless. Retrieved 11 January Archived from the original on 17 January What is Causing the Bitcoin Ketan parekh scam
Ketan Parekh Scam and it’s Impact on Financial Institutions
Living people Businesspeople from Mumbai Indian stock traders. These stocks came to be known as the K stocks and the market always seemed ketan parekh scam be bullish about the future of these stocks.
This page was last edited on 16 Juneat However, in reality, Ketan Parekh was looking out for stocks which had a low market capitalization and low liquidity.
Parekh started his career in the late s at Narbheram Harakchand Securities NH Securitiesa reputed institutional brokerage firm. He carried out this large scale dump in the evening, after regular ketan parekh scam hours, from 5 pm to midnight at the Calcutta Stock Exchange. He was believed to have bribed the officials of the said bank to persuade them to lend against shares to a greater ketan parekh scam than was permitted by law.
There have been rumors in the Bombay Stock Exchange that Ketan Parekh still continues trading from a network of unnamed corporations.
However, the bear cartel in Bombay ketan parekh scam exchange started to hammer his K stocks in Februaryleading them to fall and precipitating a payment crisis in Kolkata. It later transpired that promoters and industrialists often gave Parekh funds to artificially rig up their share prices.
The use of this material is free for learning and education purpose. His pictures began ketan parekh scam appear in newspapers with his comments on matters related to finance and the budget. In the 90s, 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 scam.
This led to an ketan parekh scam story on him which was first published on 25 August covering a millennial bash that he had given at his palatial bungalow at Mandwa near Mumbaiwhich was attended by Mumbai’s gliteratti, industrialists and media personalities.
Some KP10 stocks still doubled investors’ wealth”. Later it turned out that it was broker turned operator Ketan Parekh that was driving the ketan parekh scam and not changes in the fundamentals.
Though Parekh was subsequently barred from stock trading, the Securities and Exchange Board of Ketqn alleged in that a variety of companies pagekh other actors were trading on behalf ketan parekh scam Parekh. Then, as the market took over Ketan Parekh would liquidate his holdings slowly, parekkh again making less noise than his scaj Harshad Mehta would have done.
2001-Ketan Parekh scam: Stock and bull story
Please reference authorship of content used, including link s to ManagementStudyGuide. As a result, the brokers that were holding positions on his behalf in the Calcutta Stock Exchange were forced to liquidate too causing a massive sell off in the market. Retrieved 24 April This resulted in a ketan parekh scam market crash the next day, resulting xcam large scale losses for large institutional investors, including insurance companies and mutual funds.
Thus in ketan parekh scam a few months, scrips of virtually unknown companies ketan parekh scam Visualsoft rose from Rs to Rs 8, per share and Sonata Software rose from Rs 90 to Rs 2, Sdam from ” https: However, in his demeanor he was nothing like Mr Mehta.
Ketan Parekh was immediately arrested and tried in court. Ketan parekh scam lack of regulation in this exchange provided more flexibility to Mr Parekh. Ketan Parekh had a cover story to back his unscrupulous dealings and throw skeptics off track.
To make the shares more attractive to investors, he was found to have roped in the Australian magnate Kerry Packer ketan parekh scam acquire a 10 per cent stake and enhance its credibility. The average person on the bourses may begin to believe that his stocks were rising and they too would parehk investing driving the prices even higher.
The RBI commenced an investigation against Parekh. Retrieved ketan parekh scam May