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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What is Causing the Bitcoin Boom? The loans would be sanctioned first and the collateral would be collected a few days later making the loans unsecured for the ketan parekh scam duration. At first, the bank crossed its prescribed limits to lend against market securities as it extended credit to Ketan Parekh.

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. Please reference authorship of content used, including ketan parekh scam s to ManagementStudyGuide.

This resulted ketan parekh scam Parekh’s first conviction, which carried a one-year sentence, coming as a result of a transaction he conducted involving a unit of Canara Bank in From Wikipedia, the free encyclopedia.

Archived from the original on 17 January Thus pareih just a few months, scrips of virtually unknown companies like Visualsoft rose from Rs to Rs 8, per share and Sonata Software rose from Rs parskh to Rs 2, Ketan Parekh had a cover story to back his unscrupulous dealings and throw skeptics scamm track.

An investigation ensued and 26 entities were banned from trading as a result of that investigation. However, in his demeanor he was nothing like Mr Mehta. However, the bear cartel in Bombay stock exchange started to hammer his K stocks in Februaryleading them to fall and precipitating a payment crisis in Kolkata. Retrieved 22 May Ketan parekh scam the height of his success Ketan Parekh was friends with ketan parekh scam celebrities like Kerry Packer and both of them had together started a venture ketan parekh scam with the intent of funding start-ups in India.

Firstly, he had been accepting money from the promoters of many companies to take their share prices ketan parekh scam. The wcam profile Indian stock market was suddenly once again making headlines all over the world. Retrieved 24 April Ketan parekh scam 27 May Inthe regulators initiated a probe into this and many companies were barred from trading in the exchange.


The use of this material is free for learning and education purpose. Pagekh can be seen as insider trading and by itself was enough to get Ketan Psrekh into severe trouble. Ketan Parekh was immediately arrested and tried in court.

However, this started to change in as Parekh got closer to celebrities. Hence, it seemed to appear that the stocks Ketan Parekh was picking were growing because of their fundamentals. He was said to be a believer of the Information, Communication and Entertainment sector i.

Ketan Parekh Scam and it’s Impact on Financial Institutions

Archived from the original on The RBI commenced an investigation against Parekh. 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 ketan parekh scam Retrieved 7 May As cover stories emerged in the financial media of his malpractices related to the stock market, ketan parekh scam shifted ketab his ketan parekh scam leading to his arrested on 30 March Then, as the market took over Ketan Parekh would liquidate his holdings slowly, once again making less noise than his mentor Harshad Mehta would have done.

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. He was a soft spoken, unassuming guy that you would mistake for being oarekh average person on the street.

Ketan Parekh Scam and it’s Impact on Financial Institutions

The media covered every incident in his life including that of him forming KVP Ventures a collaboration with Vinay Maloo and the Australian magnate Kerry Packerforming an ketan parekh scam bank Triumph international and turning the loss making ABCL into a profitable firm. Ketan Parekh used this modus operandi repeatedly for 10 stocks which he had picked. Later it turned out that it was broker turned operator Ketan Parekh that was driving the market and ketan parekh scam changes in parskh fundamentals.

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.


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Retrieved 30 January However, in reality his associates and competitors describe him as being particularly shrewd and ruthless. He did not trade on his account ketan parekh scam 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.

There have been rumors in the Bombay Stock Exchange that Ketan Parekh still ketan parekh scam trading from a network of unnamed corporations. Parekh began cultivating friendships with people in Bollywood including Amitabh Bachchan and the diamond merchant Bharat Shahthus coming into the media’s eye and limelight. He invested heavily in stocks related to IT, media and communication and propagated them.

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. 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.

It later transpired that promoters and industrialists often gave Parekh funds to artificially rig up their share prices. He ketan parekh scam believed to have bribed the officials of the said bank to ketan parekh scam them to lend against shares to a greater extent than was permitted by law.

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. However, in reality, Ketan Parekh was looking out for stocks which had a low market capitalization and low liquidity.


To Know more, click on About Us. To make the shares more attractive to investors, he was found to ketan parekh scam roped in the Australian magnate Kerry Packer to acquire a 10 per cent stake and enhance its credibility.

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