What is special about Harshad Mehta?

Harshad Mehta (29 July 1954 — 31 December 2001) was an Indian stockbroker. Mehta’s involvement in the 1992 Indian securities scam made him infamous as a market manipulator. Of the 27 criminal charges brought against Mehta, he was only convicted of four, before his death (by sudden heart attack) at age 47 in 2001.

Is Harshad Mehta good or bad?

Harshad Mehta was one of the best brokers in the nation. The banks associated with Harshad Mehta made an extremely huge amount of profits. As a result of the slow banking system, the brokers used the money to pump money into the stock market.

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What is the story of Harshad Mehta?

Harshad Mehta (29 July 1954 — 31 December 2001) was an Indian stockbroker. Mehta’s involvement in the 1992 Indian securities scam made him infamous as a market manipulator. Of the 27 criminal charges brought against Mehta, he was only convicted of four, before his death (by sudden heart attack) at age 47 in 2001.

How did Harshad Mehta take advantage of the broken system?

Harshad Mehta then took advantage of the broken system and took the scam to new levels. In a normal RF deal, there would be only 2 banks involved. Securities would be taken from a bank in exchange for cash.

How did Harshad Mehta exploit the RF deal system?

Harshad Mehta noticed early on the dependence of the RF deals on BR’s. In addition to this, the RF deal system also placed a great deal of reliance on prominent brokers like Harshad Mehta. So he along with two other banks namely Bank of Karad (BOK) and the Metropolitan Co-operative Bank (MCB) decided to further exploit the system.

How did Harshad Mehta combat the bear cartels in the stock market?

Instead of having just two banks involved, there were now multiple banks all connected by a web of RF deals. Harshad Mehta used the money he got out of the banking system to combat the Bear Cartels in the stock market. The Bear Cartels were operated by Hiten Dalal, A. D. Narottam and others.