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 sccam subsequently barred from stock trading, the Securities and Exchange Board ketan parekh scam India alleged in that a variety of companies and other actors were trading on behalf of Parekh.
At the height of his success Ketan Parekh ketan parekh scam friends with international celebrities like Kerry Packer and both of them had together started a ketan parekh scam capital with the intent of funding start-ups in India.
He was said to be a believer of the Information, Communication and Entertainment sector i. Parekh purchased large stakes in less known small market capitalization companies, and jacked up their prices through circular trading with other traders, and collusion with these companies and large institutional investors.
Please reference authorship of content used, including link s to ManagementStudyGuide. Living people Businesspeople from Mumbai Indian stock traders. Thus in just a few months, scrips of virtually unknown companies like Visualsoft rose from Ketan parekh scam to Rs 8, per share and Sonata Software rose from Rs 90 to Rs 2, 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 is a ketan parekh scam stock broker from MumbaiIndiawho was convicted infor involvement in the Indian stock market manipulation scam that occurred from late to To Know more, click on About Us.
He was believed to have bribed the officials of ketan parekh scam said bank to persuade them to lend against shares to a greater extent than was ketan parekh scam by law.
The loans would be sanctioned first and the collateral would be collected a few days later making the loans unsecured for the interim duration. He was a soft spoken, unassuming guy that you would mistake for being an average person on the street. An investigation ensued and 26 entities were banned from trading as a result of that investigation.
Inthe regulators initiated a probe into this and many companies were barred from trading in the exchange.
Ketan Parekh scam: Stock and bull story – Cover Story News
His pictures ketan parekh scam to appear in newspapers with his comments on matters related to sca, and the budget. Retrieved 24 April However, the extent to which such actions can stop the activities of Ketan Parekh is yet to be ascertained. He invested heavily in stocks related to IT, media and communication and propagated them. Retrieved 11 January Ketan parekh scam has been prohibited from trading in the Bombay Stock Exchange for 15 years ketan parekh scam.
There have been rumors ktean the Bombay Stock Exchange that Ketan Parekh still continues trading scan a network of unnamed corporations.
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. Retrieved 7 May 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 ketan parekh scam years, especially those of two entities – GTB bank and MMCB bank.
At first, the bank crossed its prescribed pparekh to lend against market securities as it extended credit to Ketan Parekh. He would then pump money into these shares and start fictitious trading within his own network of larekh. Retrieved from ” https: 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 ketan parekh scam credibility.
The Ketan Parekh Scam
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. However, in his demeanor he was nothing like Mr Mehta. This resulted in steep hikes in share prices for example: Then, the bank basically started making unsecured loans to him. Archived from the original on 17 January Hence, it seemed to appear that the ketan parekh scam Ketan Parekh was picking were growing because of their fundamentals.
The low profile Indian stock market was suddenly once again ketan parekh scam headlines all over the world.
Firstly, he had been accepting money from the promoters of many companies to take their share prices up. As cover stories emerged in the financial media of his malpractices related to the ketan parekh scam market, scrutiny shifted to his activities leading to his arrested on 30 March However, in reality, Ketan Parekh was looking out for stocks which had a low market capitalization and low liquidity. The RBI ketan parekh scam an investigation against Parekh.
Ketan Parekh used this modus operandi repeatedly for 10 stocks which he had picked.
From Wikipedia, the free encyclopedia. Around the same time, a bear cartel of brokers in Mumbai opposed to Parekh tried to dump their shares of K stocks.
Retrieved 27 May Retrieved 22 May However, as a bear cartel started hammering the K stocks, Ketan Parekh found himself locked out of ketan parekh scam. The average person on the bourses may begin to believe ketan parekh scam his stocks were rising and they too would start investing driving the prices even higher.
Later it turned out that it was broker turned operator Ketan Parekh that was ketan parekh scam the market and not changes in the fundamentals. As a result, he was able to achieve a similar feat as compared to what Mehta himself had accomplished. However, in reality his associates and competitors describe him as being particularly shrewd and ruthless.
Parekh started his career in ketan parekh scam late ketan parekh scam at Narbheram Harakchand Securities NH Securitiesa reputed institutional brokerage firm.