Table of Contents
What can we learn from Harshad Mehta?
Better to take risk that can be digestible not like taking big risks like Harshad Mehta . Always observe everyone closely with whom you are surrounded with. Always have humble and learning attitude towards anything to learn in life. Mehta never hesitated to start learning anything at any point of time..
Did Harshad Mehta improve Indian economy?
While Harshad Mehta exploited the visible communications gaps in the money market to defraud banks and manipulate stocks, the changes after 1992 and those amended later have failed to improve the gaping loopholes in India’s banking sector.
Who is Harshad son?
Aatur Harshad Mehta
Harshad Mehta/Sons
What is Harshad Mehta’s scheme?
Harshad Mehta’s scheme was very simple in essence. He would secretly embezzle huge sums of money from the government securities market for a short duration. He would then invest this money in a few selected securities and drive their prices insanely high.
How did Harshad Mehta’s method of embezzlement work?
Harshad Mehta’s method of embezzlement was a bit complicated. Mr Mehta had colluded with the banks to change the very nature of the government securities market. Earlier, the role of a broker was only to bring the parties together whereas the banks would undertake the transaction of securities and lending of money themselves.
What happened to Harshad Mehta after Sucheta Dalal broke his story?
According to Sucheta Dalal, “A few days after I broke the first story of the Securities Scam, the Central Bureau of Investigation (CBI) ham-handedly arrested 13-odd people including Harshad Mehta, his brother Ashwin, several of their employees and a few SBI officials.” It was only in 2018 that he was finally cleared by a special court.
Why did banks approach brokers like Harshad Mehta in 1992?
This meant that the banks had to dabble in high-risk-high-return bonds issued by other banks to improve their bottom line. Thus, the banks started approaching brokers like Harshad Mehta, to find and execute high return bond deals for them, setting in motion the 1992: Harshad Mehta scam.