The Indian stock market has seen several scams in its history, and the 2001 Ketan Parekh Stock Market Scam is one of them. Ketan Parekh was known as the “ITC bull” for his expertise in the Indian stock market, but unfortunately, he was later accused of manipulating the stock prices and was the face of the 2001 stock market scam. Most people know him that way but don’t know the real story behind the accusations. This case study will give you all the required information you need to know about Ketan Parekh, the impact of the scam on the Indian stock market, and the real truth behind Ketan Parekh’s story.
Ketan Parekh was a well-known stockbroker in the Indian stock market, with a vast portfolio of shares in various companies. Before that, he used to assist his father and uncles in the family business named Narbheram Harakchand Securities. He also cleared the challenging Chartered Accountancy exam but later tried his luck and skill in the trading industry of India. With a sharp mind and risk-taking mindset, Ketan Parekh mastered the art of trading. At a very young age, he had close connections with politicians, corporate executives, and bankers, which gave him significant influence in the stock market. Unfortunately, he was later accused as a scammer, and only a handful of people know the real truth behind the scam.
As Ketan Parekh knew the stock market well, he decided to invest in the ICE industry as it was booming at that time. His efficacy and dedication didn’t take much time to influence investors, entrepreneurs, and financial institutions. In 2001, the stocks of ICE (infotech, communications, and entertainment) dropped within hours, and the whole story of Ketan Parekh changed from there. Ketan was found guilty of insider trading and manipulating stock prices. The accusations stated that he deceived investors by using insider trading, which later turned out to be a huge scam. He was later prohibited from the Indian stock market and imprisoned by the Supreme Court. However, people claimed Ketan Parekh was a scammer without knowing his side of the story, which seems unfair.
Most people don’t know that Mr. Parekh went beyond and above to return the money he owed. He even went behind bars but didn’t stop fighting for his rights. However, Ketan Parekh was nothing but a law-abiding citizen to the people, and only a few were aware of the fact that he repaid a huge percentage of the money he owed. Although many transactions are still under review, it is yet to be concluded. He is not like others who flew from the country, as he respected and followed all the court’s judgments.
In addition, Ketan stated that the risks he took at that time were necessary and didn’t spare an effort to rectify what he had done. There’s no doubt that he had other options rather than facing the court, like running away with the money and getting settled somewhere in the world where nobody could touch him. Instead of that, Ketan Parekh accepted every accusation and still has been working on the corrective measures that may fix everything. Hence, people must avoid making judgmental comments and must be kind enough to understand that everyone deserves a second chance.