Harshad mehta case study

Talking about white-collar crimes, it is a non-violent crime committed for financial gains and often results in distress and loss to some other person. These are not victimless crimes rather it devastates families, destroys companies and leave the victim suffering and weeping. The term white-collar crimes are an umbrella term and includes – corporate fraud, money laundering, insider trading, embezzlement, etc. to name a few. White collar crimes or crimes of the sophisticated segment of society, as I call them to have the following essentials; • Non-violent in nature • Act or omission resulting in injury • Intention to defraud • A wrongful loss to the victim and wrongful gain to the perpetrator • Aimed at financial enrichment of perpetrator • Results in financial distress to the victim • Not dependent on the application of physical force /threat/violence Brief Historical Background The white-collar crimes have been linked to the sophisticated, educated and affluent people ever since it was first defined by sociologist Sir Edwin Sutherland, long back in 1939. He defined them as – “a crime committed by a person of respectability and high social status in the course of their occupation.” He mentioned that a wrongdoer is generally a person who is entrusted with a great amount of faith and trust, and perpetrators of this category were usually businessmen, politicians, high ranked officials, and many more. They are educated, intelligent, affluent, and confident opportunists whose...

A Case study on Harshad Mehta  Harshad Shantilal Mehta was born on 29 July 1954, at Paneli Moti, Rajkot district, in a Gujarati Jain family. His early childhood was spent in Kandivali Mumbai.  He completed his B.Com in 1976 from Lajpatrai College Mumbai and worked a number of odd jobs for the next eight years.  After graduation, Mehta tried his hand at various jobs, often related to sales, including selling hosiery, cement, and sorting diamonds.  Mehta started his career as a sales person in the Mumbai office of New India Assurance Company Limited (NIACL). During this time, he got interested in the share market and after a few years, resigned and joined a brokerage firm. In the early 1980s, he moved to a lower level clerical job at the brokerage firm B.Ambalal & Sons where he worked a jobber for the broker P.D. Shukla.  Over a period of ten years, beginning 1980, he served in positions of increasing responsibility at a series of brokerage firms.  By 1990, he had risen to a position of prominence in the Indian securities industry, with the media (including popular magazines such as Business Today) touting him as "The Amitabh Bachchan of the Stock market.”  In 1984, Mehta was able to become a member of the Bombay Stock Exchange as a broker and established his own firm called Grow More Research and Asset Management, with the financial assistance of associates, when the BSE auctioned a broker's card.  He actively started to trade in 1986.  Associated Cement Company (A...

Format: * PDF Audio MP3 Audio M4A Audio CDROM Audio Cassette Bundle DVD Event Live Conference Event Virtual Conference Word Document Electronic Book Enhanced Electronic Book ePub Financial Ebook Hardcover/Hardcopy Hardcover/Hardcopy (Color) Hardcover/Hardcopy (B&W) Web Based HTML Kit License Magazine Mobi Multimedia CDROM Multimedia Windows Media Paperback Book Powerpoint Paperback/Softbound Paperback/Softbound (Color) Paperback/Softbound (B&W) Registration Fee Short Run Subscription Service Video CDROM Video DVD Video Flash Video VHS (NTSC) Video VHS (PAL) Video Real Player Microsoft Excel Spreadsheet XML Zip File Below are the available bulk discount rates for each individual item when you purchase a certain amount • Buy 5 - 10 and pay only $8.75 each • Buy 11 - 49 and pay only $8.50 each • Buy 50 - 499 and pay only $8.25 each • Buy 500 or above and pay only $8.00 each Author: Preeti Goyal Author: Sanjay Dhamija Best Seller: FALSE Classic: FALSE Copyright Perm Flag: TRUE Educator Message Flag: TRUE Exclusive: FALSE Pages: 12 Primary Category: Case Publish Date: September 15, 2010 Publish Date Range: Older than 24 months Source: University of Hong Kong Special Value: FALSE Subcategory: Finance & Accounting Subject: Finance & Accounting Format Type Filter: PDF Format Type Filter: Hardcover/Hardcopy (B&W) Related Topics: Finance and investing Related Topics: Financial markets SubjectList: Finance and investing,Financial markets Item: # HKU904 Pages: 12 Publication Date: Sep...

Table of Contents • • • • • • • • • • Fact No. 1: Came to Mumbai dirt poor Born in a lower-middle-class family, in Paneli Moti, Rajkot, Harshad Mehta came to Mumbai in search of a living. At the time, the Big Bull of Dalal street had only Rs 40 in his pockets. To survive in the city of dreams, he took meagre jobs for the next 8 yrs. Fact No. 2: Became the “Big B” of the stock market By the 1990s, Harshad Mehta had risen to such prominence in the Fact No. 3: The most treasured man of the Income Tax department In 1992, Harshad Mehta paid the highest Fact No. 4: Lived life king size He owned a 12,000 sq. ft. lavish penthouse in Worli and a fleet of rare, luxurious cars like the Lexus Starlet and Toyota Corolla. Many people only dreamt of owning these in the 1990s. Fact No. 5: Orchestrated India’s biggest scam ever Between April 1991 and 1992, Mehta manipulated Fact No. 6: Got a staggering surge in market value In this scam, Rs 3,500 cr of funds from the banks were diverted to a group of stockbrokers, led by Harshad Mehta. These funds were then put into selective stocks, causing them to surge over a staggering 4,500 per cent. Fact No. 7: The biggest stock market scam exposed Journalist Sucheta Dalal exposed the scam on 23rd Apr 1992 in the columns of the Times of India. Based on the scam, she co-wrote a book titled “The Scam: Who Won, Who Lost, Who Got Away” with Debashish Basu. Fact No. 8: Poor banking system Thanks to the scandal, loopholes in the Indian banking system and t...

Sebi debars Harshad Mehta from securities dealing; BPL, Videocon, Sterlite restricted On Thursday, Sebi barred Harshad Mehta from dealing in securities. It also prohibited BPL Limited, Videocon International and Sterlite Industries from accessing the capital market for four, three and two years respectively. It also ordered prosecution proceedings against all the above parties. Sebi finished its investigations into the alleged price manipulations in the scrips of BPL, Videocon and Sterlite in 1998. Sebi completed its investigations in three stages. In the first stage, it found that a set of brokers and sub brokers acting on behalf of a common set of clients who were acting as a front for Harshad Mehta cornered large chunk of shares of Videocon, BPL and Sterlite. This cornering led to price manipulation and the scrip prices rose substantially. Sebi suspended 17 brokers (10 of BSE and 7 of NSE) for periods ranging from one to three years. Several other brokers were given lesser punishment. In the second stage, it asked the then BSE president J C Parekh to relinquish office. The BSE vice president Rajendra Banthia resigned following investigations. Later investigations were completed against Harshad Mehta and BPL, Videocon and Sterlite by October 1999. It then issued show cause notices to them in December 1999. Sebi was then required to hear these cases in quasi-judicial manner. After inspecting the documents and cross-examining the witnesses, Sebi passed the following orders...

INTRODUCTION The trick was the greatest currency market trick at any point submitted in India, adding up to roughly Rs. 5000 crore. The principal culprit of the trick was stock and currency market dealer Harshad Mehta. It was a methodical stock misrepresentation utilizing bank receipts and stamp paper that made the Indian financial exchange crash. The trick uncovered the inborn provisos of the Indian monetary frameworks and brought about a totally transformed arrangement of stock exchanges, including a presentation of online security systems. Security cheats allude to the possibility of redirection of assets from the The 1992 trick was orderly extortion submitted by Mehta in the Indian financial exchange which prompted the total breakdown of safety frameworks. He submitted extortion of more than 1 billion from the financial framework to purchase stocks on the Bombay Stock Exchange. This affected the whole trade framework as the security framework fell and financial backers lost a huge number of rupees in the trade framework. The extent of the trick was entirely huge, to the point that the net worth of the stocks was higher than the consolidated wellbeing and training financial plan of India. The trick was coordinated so that Mehta got protections from the State Bank of India against fashioned checks endorsed by degenerate authorities and neglected to convey the protections. Mehta made the costs of the stocks take off high through imaginary practices and sold the stocks tha...