The Ketan Parekh Scam
Most of us have heard of Harshad Mehta and how he committed one of the largest financial scams in the history of the Indian stock market. He was a master manipulator, and his influence over the market and other institutions helped him rig share prices. But did you know that one of his mentees, Ketan Parekh, pulled off another infamous and ruthless scam that completely shook the markets? Government agencies have estimated that the extent of the fraud could be up to Rs 40,000 crore! In today’s article, we discuss the Ketan Parekh Scam of 2001.Who is Ketan Parekh: The Pied Piper of Dalal Street? Ketan Parekh was a Chartered Accountant (CA) by profession. He started his career in the late 1980s and initially ran a business called NH Securities— a stockbroking firm established by his father. Parekh later joined Harshad Mehta’s firm (GrowMore Research & Asset Management), where he closely observed market trends and the mindset of investors. He learnt the techniques...