Harshad Mehta vs Ketan Parekh : Ever Since the Release the of Scam 1992, Harshad Mehta is on the lips of every Indian these days. To this Big Bull of BSE, there was another Bombay Bull known as Ketan Parekh
Harshad Mehta 1992 Scam and Ketan Parekh 2002 Scam were the 2 scams that disturbed the Indian share Market and Indian Economy as well. Though, also part of the Harshad Mehta’s scam in 1992, he was neither convicted nor suspended from the BSE in 1992. Due to his low profile in early days and lessons from his mentor Harshad, he was able to stretch his legs for another scam in 2002 which ultimately led to his ban from trading.
Who was Ketan Parekh?
If Harshad Mehta was the Big Bull of BSE, Ketan Parekh was called as Bombay Bull of BSE. Unlike Harshad Mehta, Stock Trading came as a family business to Ketan Parekh from his Father. Starting as Chartered Accountant, Ketan joined Harshad’s Growmore in 1980’s and therefore learning all the fraud lessons of Stock Trading.
Due to his connections with Bollywood, Ketan Parekh invested in Zee Telefilms and took the their share from Rs 127 to Rs 2330. Ketan Parekh also invested in Satyam Computers, which was later involved in India’s biggest accounting fraud.
Harshad Mehta vs Ketan Parekh Lifestyle
Harshad Mehta Lifesyle
- Lavish Lifestyle
- Liked to be active in media
- Loved to be famous among common people
- Came from a lower-middle-class background
- No experience or background in the stock market
- Had many enemies due to his larger than life lifestyle
- Used to deal in closed networks
- Dealt with retail investors
- Kept money in India
- Mostly worked in BSE (sometimes Kolkata stock exchange)
- Took advantage of loopholes (practiced by most people)
- Mostly exploited the Bank Receipt loophole
- SEBI had no significant powers at that point in time which helped him
- Rs 5,000 Crores scam
Ketan Parekh Lifestyle
- Down to earth
- Used to stay away from media and the public (mostly)
- No big cars and houses
- Had fewer enemies
- Is a Chartered Accountant and family had a stock-market related business
- Had a large network of people
- Mostly worked with Kolkata stock exchange (since BSE had increased regulations after Harshad’s scam)
- Had his money spread worldwide
- Dealt with institutional investors
- Was involved in malpractices (not done by many people)
- The scam was done by exploiting the bank’s Payment Orders
- Even after SEBI got significant powers he was able to pull off his exploits
- Rs 40,000 Crores Scam
Also Read : What are Scam 1992 Characters up to these days?