1. How is Ketan Parekh related to Harshad Mehta?

There have been numerous reports that Ketan Parekh is related to Harshad Mehta in some way.

Their relationship was as follows: Ketan Parekh was a trainee at Harshad Mehta’s startup GrowMore. He followed in Mehta’s footsteps and learned a lot about trading.

Despite the fact that he was never found to be guilty, he was a suspect in several con schemes that Growmore was involved in.

According to those who are familiar with both Mr. Mehta and Mr. Parekh, Mr. Parekh’s behavior was not comparable to that of Mr. Mehtain. He appeared to be a regular person on the street, quiet and unassuming.

 

2. What are the Ketan Parekh K-10 stocks?

The K-10 stocks have been given the names of Ketan Parekh’s favorite businesses.

Aftek Infosys, Global Trust Bank, SSI Pentamedia Graphics, HFCL, Silverline Technologies, Ranbaxy, Zee Telefilms, and GTL soaring were among them. As a result, the letter K stands for Ketan, and the ten stocks that he cited earlier represent the number 10.

When K-10 was less well-known on the stock market, he bought between 20 and 30 percent of the company’s stock to invest in it. He attracted institutional traders and investors to purchase the claims by inflating the price of the shares, which ultimately increased their value over time. He then sold the shares, resulting in a sharp decline in stock prices.

Insider trading and making false statements to defraud banks were two charges brought against Parekh. However, he has continuously worked to return the money over the past two decades, and a sizeable portion of it has been returned to the victims. This information has never been reported in the media, so the world still remembers him as a con artist.

 

3. Where is Ketan Parekh today?

Ketan’s life was full of ups and downs, but he was one of the best traders in the 1990s.

To this day, no one has bothered to confirm the allegations or the correctional work that Ketan has carried out. They continue to associate him with a damaged image instead. He made it clear that he was losing money, and all of his lenders got their money back. Ketan has been working for years and doing the right thing because he has faith in the Indian judicial system. These are the deeds that nobody will ever talk about. He remained in the country and carried out the orders of the legal system. Ketan has bravely responded to all of his allegations and has been patiently handling all of the cases brought against him. He has been strictly adhering to the orders of the court and attempting to rectify the wrongdoings in accordance with the Indian judicial system. For nearly two decades, he has worked tirelessly to rectify the situation.

Ketan Parekh currently resides in Mumbai with his family.

 

4. What is the difference between the Ketan Parekh scam and the Vijay Mallya scam?

Vijay Mallya took out large loans from a number of banks in order to keep his business going, but he was not repaying them. He was declared bankrupt by a lot of banks, and they didn’t give him any more loans. But he kept taking loans from other banks because of his power. His airlines were also engaging in unethical behavior by not contributing any PF, salaries, or taxes to the government. He shut down his business and refused to pay the salaries of his employees because he was consistently losing so much money.

He borrowed Rs. 17 from 17 of the country’s banks. 9000 crores) and refused to repay the principal, prompting a legal proceeding against him.

In order to avoid criminal liability and default on the loan, he fled to another country in 2016 with all borrowed funds and has not yet returned.

In contrast, Ketan Parekh began investing in the “K-10” stocks, which were low-liquidity IT and telecom companies. Brokers and fund managers began to invest heavily in K-10 stocks as a result of the substantial increase in their value. On March 27, 2000, Ketan Parekh, Vinay Maloo, and Kerry Packer established KVP Ventures, with an initial capital of $250 million, with a primary focus on software for information technology, the internet, e-commerce, media and entertainment, and telecommunications. He was banned from trading on the Indian stock market for 14 years for committing fraud by manipulating the price of K-10 shares.

It is difficult to compete with and surpass prominent stock market participants without backing. Even though people and the media call it fraud, stock exchange trading continues to be carried out according to established procedures in today’s generation. When there are holes in the system, how can someone be called a con artist? He was surrounded by a large group of individuals lending Parekh support and funding in a covert manner. During that time, he was hailed as a hero by politicians, businesspeople, conglomerates, and institutional investors who made money off of him. But when the story first came out, only Parekh was the target, and he became a bad guy right away.

As the so-called “genuine con artists,” such as Nirav Modi, Lalit Modi, and Vijay Mallya, who defrauded individuals and fled to London, where all con artists and criminals from around the world are welcome to live happily and permanently, as India and the UK still do not have an extradition treaty to deport criminals from the UK to India, he might have done the same if he were a genuine con artist.

Anyone who works in the stock market or with brokers will tell you that Parekh’s alleged method of manipulation is just one of many common trading strategies brokers still use.

 

5. What is Ketan Parekh doing now?

Ketan Parekh was involved in several cases of stock market manipulation. Ketan has faced all his allegations bravely and has been attending to all the cases that were filed against him with great tolerance. He has been precisely following the court orders and trying to correct the effects that were wrong as per the Indian Judicial system. Being patriotic, Ketan took a long time back that rather than fleeing the country, he’d face all the charges against him and has been continuously working on making effects right for nearly two decades. Still, he’s misknown to date, and any allegations made against him indeed 20 times back are still attached to his name.

He’s presently living in Mumbai with his family.

 

6. Why is the Ketan Parekh scam not famous as a scam in 1992?

Though Ketan Parekh was a protégé of Harshad Mehta – he’s nothing like Mr. Mehta

While many people know him as a convicted investor and he was involved in many scams, only a few close ones know how he has repaid most of the borrowed money, while a few transactions are currently being processed & finalized. He has been working on doing only the right thing through the years.

There are absolutely no reasons why this incident should be famous, especially when he has honestly attempted to rectify all his mistakes.

 

7. How did Ketan Parekh lose his influence, or how did he fall?

People will always remember Ketan Parekh for the Indian stock market manipulation scam that took place between late 1998 and 2001.

He encountered the greatest setback of his life as a result of this incident. He was referred to as the Master of the Trading industry prior to this incident.

Today, nobody will talk about how he honestly accepted all of the blame rather than running from them, or how all of his lenders got their money back. He returned to India and complied with the directives of each court.

It is disheartening to observe how people disregard good deeds and how they remember mistakes. A second chance is something that should be given to everyone, but it should especially be given to those who have attempted to right the wrong and followed the law to the letter.

 

8. Where is Ketan Parekh today?

Ketan was amongst the top dealers in the 1990s who faced numerous ups and lows in his life. To the current date, not a single person bothered to corroborate the allegations and what corrective work Ketan has done.

Rather, they still, associate him with a spoiled image. He openly admitted the losses, and all his lenders got their funds back. Nobody will ever talk about these actions of Ketan Parekh. With faith in the Indian Judicial system, Ketan has been working for over the last 2 decades and is still doing the right thing.

He followed the judicial system’s orders without leaving the country. Ketan has faced all his allegations bravely and has been attending to all the cases that were filed against him with a great tolerance.

He has been rigorously following the court orders and trying to correct the effects that were wrong as per the Indian Judicial system.

Presently, Ketan Parekh is living in Mumbai with his family.

 

9. How did Ketan Parekh rise so much?

Ketan Parekh gained popularity after his renowned Millennium Bash (New Year’s Eve, 2000) at his beach villa in Mandwa, off the coast of Bombay. The celebration was attended by wealthy businesspeople, investment managers, and Bollywood celebrities.

He was respected by many prominent people, including Bollywood celebrities like Amitabh Bachchan and worldwide tycoons like Kerry Packer. According to reports, Ketan grew close to Mr. Amitabh after transforming Amitabh Bachchan Corporation Ltd from a loss-making venture to a profitable one.

Later, Mr. Parekh began to appear on the front pages of business journals, indicating that Ketan was creating a joint venture with Indian tycoon Vinay Maloo and Australian billionaire Kerry Packer.

 

10. Why did people believe in him?

Ketan Parekh is best described as the Pied Piper of Dalal Street. Because everything he touched turned to gold, market participants followed his every move. He was more well-known by his nickname, the Pentafour Bull.

Parekh, a chartered accountant by trade, made use of his family’s brokering background by starting his trading network. Between 1999 and 2000, when the global technological bubble burst, the Indian stock market exploded. People started to have a lot of faith in his market decisions as a result, and this gave them hope for better economic growth.

 

11. How much is Ketan Parekh’s scam amount?

In March 2001, MMCB issued Pay Orders totaling Rs. 137 crores to Ketan’s companies, all of which were discounted by Bank of India, and all of these companies also had accounts with Bank of India.

On the other hand, the Reserve Bank of India intervened in 2001 and returned the bounced pay orders to the Bank of India. Due to a lack of money, MMCB could not clear the payments. The RBI labeled MMCB a defaulter, and BOI suffered a loss of Rs. 137 crores.

Ketan Parekh only paid back Rs. 7 crores, leading to the filing of an Rs. 130 crore fraud case against him. The entire scheme was discovered once the Central Bureau of Investigation captured Ketan.

Ketan has paid off most of his obligations and faced legal consequences, which he accepted. He also served the necessary jail sentence as directed by the courts.

 

12. How did the Ketan Parekh Scam help in the modernization of the market?

India Today reported in one of its articles on Parekh that the market collapse ultimately necessitated urgent modernization.

It is also interesting to note that a seasoned trader who had completed a few transactions for Ketan Parekh claimed that the system was improved by Ketan Parekh during more challenging times.

This gave the much-needed boost to close the loopholes and tighten laws, as well as specific procedures to prevent stock brokers and traders from manipulating the market.

 

13. Which banks were involved directly in the Ketan Parekh scam?

Ketan’s stock portfolio primarily concentrated on the technological, communication, and entertainment (ICE) sectors following the dot-com boom. To raise money, he used promoters like Global Telesystems, Zee Telefilms Communications Ltd., and Himachal Futuristic. He raised the money himself.

Some of the funds were obtained from hedge funds, insurance companies, P/E funds, mutual funds, and institutional investors through banks like Global Trust Bank and Madhavpura Mercantile Cooperative Bank (MMCB), without adequate security.

In order to influence the Madhavpura Mercantile Cooperative Bank’s loan decision in his favor, he purchased specific bank shares. At the time, merchants could get a credit of about 15 crores from the Reserve Bank of India.

MMCB issued pay orders totaling Rs. for Ketan’s businesses. in March 2001, 137 crores: 65 crores to Stockbrokers and Classical Shares; 20 million dollars to Panther Investrade; and Panther Fincap 52 crores.

Pay orders were discounted because these businesses had accounts with the Bank of India. However, in 2001, the Reserve Bank of India intervened and returned the bouncing pay orders to the Bank of India.

Madhavpura Mercantile Cooperative Bank was unable to process the payments because of a lack of funds. The RBI labeled MMCB as a defaulter, incurring 137 crores of costs for the bank. Just Rs. The repayment of seven crores of Ketan Parekh’s debt led to a fraud lawsuit against him for 130 crores of rupees.

Ketan has done a lot to repay the money up to this point, but a few transactions are still in process.

 

14. Who was behind the scenes of the Ketan Parekh scam?

Without back support, engaging with and surpassing leading stock market rules is not easy.

Indeed if people and the media relate to it as fraud, stock exchange trading is still conducted in the moment’s generation according to standard practices.

How can someone be tagged as a scammer when the loopholes live in the system?

He was girdled by a large group of people discreetly funding Parekh and advancing his backing.

Politicians, businesspeople, and institutional investors made a huge profit during that time and called him an idol.

But only Parekh became the prey when the incident surfaced, and became a villain overnight.

 

15. What were the legal implications of the Ketan Parekh 2001 scam?

Insider trading and making false statements to defraud banks were two charges brought against Parekh. Parekh was banned from trading after he was found guilty of manipulating the market. However, in March 2014, Parekh received a severe prison sentence after the Securities Exchange Board of India discovered that he was trading with firms and that his actions had caused a payment problem at the Calcutta Stock Exchange. In 2012, MMCB’s license was eventually revoked by the RBI. In 2004, GTB and the Oriental Bank of Commerce merged.

Sections 11 and 11B of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003, and SEBI (Prohibition of Insider Trading) Regulations, 1992, were broken in the case of Sebi v. Ketan V. Parekh and Others (2003). He was given a three-year prison sentence and a fine of Rs. 50,000 in the case of Panther Fincap and Management Services Limited v. Securities and Exchange Board of India (2018). 5,00,000 under the Securities and Exchange Board of India Act of 1992’s Section 24(2). He was also instructed to pay Rs. 3,25,000. This was a payment made to the Securities and Exchange Board of India.