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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He carried out this large scale dump in the evening, after regular trading hours, from 5 pm to midnight at the Calcutta Stock Exchange. However, the bear scamm in Bombay stock exchange started to hammer his K stocks in Februaryleading them to fall and precipitating a payment crisis in Ketan parekh scam. Living people Businesspeople from Mumbai Indian stock traders.

The Ketan Parekh Scam

The scxm would be sanctioned first and the collateral would be collected a few days later making the ketan parekh scam unsecured for the interim duration. Ketan Parekh is a former stock broker from MumbaiIndiawho was convicted infor involvement in the Indian stock market manipulation scam that occurred from late to The use of this material is free for learning and education purpose.

Inthe regulators ketan parekh scam a probe into this and many companies were barred from trading in the exchange.

Stock and bull story”. The RBI commenced an investigation against Parekh.

Then, the bank basically started making unsecured loans to him. Ketan Parekh was immediately arrested and tried in court. Retrieved 11 January As a result, he was able to ketan parekh scam a similar feat as compared to what Mehta himself had accomplished.

Panicking, Parekh sold off his entire ownership of the ketan parekh scam called K stocks that he had successfully jacked up over the past two years, especially those of two entities – GTB bank and MMCB bank. Also, he had been sentenced ketan parekh scam one year rigorous imprisonment for his economic crimes.

He did not trade 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. This was followed by his acquiring expensive luxury cars including a Ketan parekh scamthrowing regular high profile parties that were eagerly lapped up by the tabloid media.

Ketan Parekh Scam and it’s Impact on Financial Institutions

Retrieved 27 May At the height of his success Ketan parekh scam Parekh was friends with international celebrities like Kerry Packer and both of them had together started a venture capital with the intent of funding start-ups in India. Then, as the market took over Ketan Parekh would liquidate his holdings slowly, once again making less noise than his mentor Harshad Mehta would ketan parekh scam done.

Archived from the original on ketxn He was believed to have bribed the officials of the said bank to persuade them to lend against shares to a greater extent than was ketan parekh scam by law.

Please reference ketan parekh scam of content used, including link s to ManagementStudyGuide. Retrieved 7 May At first, the bank crossed its prescribed limits to lend against market securities as it extended credit to Ketan Parekh.

Ketan Parekh Scam and it’s Impact on Financial Institutions

He has been prohibited from trading in ketan parekh scam Bombay Stock Exchange for 15 years i. Thus in just a few months, scrips ketan parekh scam virtually unknown companies like Visualsoft rose from Rs to Rs 8, per share and Sonata Software rose from Rs 90 to Rs 2, 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.

However, in reality his associates and competitors describe him as being particularly shrewd and ruthless. Retrieved 24 April However, as a bear cartel started hammering the K stocks, Ketan Parekh found himself locked out of cash. However, in his demeanor he was nothing like Mr Mehta.

Retrieved 30 January He was said to be a believer of the Information, Communication and Entertainment sector i. To make the shares more attractive to investors, he was ketan parekh scam to have roped in the Australian magnate Kerry Packer to acquire a 10 per cent stake and ketan parekh scam its credibility.