In our information-sensitive surroundings, one misstep may catapult you to fame while a hundred well-executed tasks go unnoticed. Ketan Parekh, a stock market genius, had to face a similar situation. He is one of the most influential players in the Indian stock market. Today we will tell you the real truth about the Ketan Parekh Scam – the journey of being one of the most influential names in the Indian Stock Market to facing numerous blows to his reputation and the reality of the incident that is hidden from the world.
Ketan Parekh, known as the ITC bull, began his career by supporting his father and uncles at their family-run company “Narbheram Harakchand Securities.” While working, he cleared the challenging Chartered Accountancy exam in 1985. Ketan’s talent for numbers helped him get into finance early. He did not initially start his career in the trading field but soon realized he had a knack for it. Let us dive deep into the lesser-known truth about the infamous Ketan Parekh scam.
What was the Ketan Parekh Scam?
Ketan Parekh was a firm believer in the ICE industry during the dot-com boom years of 1999 and 2000. (Information, Communication, and Entertainment). This enabled him to show many more investors that his estimates were accurate. Furthermore, various investment firms, foreign corporations, banks, and entrepreneurs from publicly traded companies entrusted him with their money while Ketan Parekh commanded the stock market from 1999-2000.
He was seeking low-profile enterprises with low market capitalizations and liquidity. That is how he influenced the pricing of such businesses using the ‘Pump and Dump’ strategy. He was accused of participating in insider trading by purposefully influencing the stock price of certain corporations that would bribe him and then profit from the price rise to deceive investors.
SEBI determined he owed Rs. 12.73 billion to companies, Rs. 8.88 billion to MMCB, and Rs. 2.66 billion to Global Trust Bank in April 2001. 2006 saw 400 billion rupees. He was accused of using Overseas Business Bodies and FII sub-accounts to shift money offshore. The government accused Ketan Parekh that he lied, faked accounts, stole stock market prices, misused investors’ judgments, mismanaged public money, and paid business directors to engage in insider trading but the reality is quite different. It’s high time that people learn the real truth behind this scam.
The Untold Truth about the Ketan Parekh Scam
While Ketan is widely known as a convicted scamster and rogue investor, very few people know about the actions he has taken over the last two decades to make amends. With faith in the Indian judicial system, Ketan has been working for years toward doing the right thing. He has never openly revealed his side of the story, leading to many false statements and speculations. But the time has come for the world to see the actual truth and get to know him as a person and an investor.
Ketan was trapped, triggering off a payment crisis on the bourses, and forced to default on his payment obligations to banks. The events that followed are well known: Ketan was arrested and tried in court. He served time in prison and was prohibited from trading in the Indian Stock Exchange for over a decade.
Ketan firmly believes that the risks he took during his trading days were necessary. Nevertheless, he is very aware of the impact of the consequent losses on the financial institutions involved, their customers, and the Indian economy. For this reason, his ultimate aim has been to return the money he had borrowed from the banks which had been lost in 2001.
While many know him as a convicted investor involved in several frauds, only a few close ones know how he has repaid most of the borrowed funds. At the same time, a few transactions are still being reviewed and concluded. Over the years, he has worked hard to do just the right thing.
Ketan decided a long time ago that he would face all the charges against him. While others in his position would – and have, as we have seen over the past decade – fled the country, choosing to live a life of luxury abroad, Ketan has made unending attempts to make amends. To that end, over the past 20 years, Ketan has followed the journey of the cases filed against him through the Indian judicial system and accepted the restrictions placed upon him by the Court.
However, he remains misunderstood by the world. Ketan is still remembered for the allegations made against him 20 years ago but people rarely try to verify the truth behind the allegations and therefore never discover the steps he has taken to correct the wrongs. Ketan’s life has been unlike anything known by the public, full of terrific ups and devastating lows.
Time to Change the Prejudiced Thinking of the Society
Ketan has seen the entire trading business and old-school practices undergoing a complete paradigm shift in the last few decades. He is an expert who should be looked up to understand the flaws of the trading mechanisms, which still exist even today when the Demat accounts crossed the ten-crore mark in August 2022.
When a name is linked to fraud, right or wrong, it’s glamorized and becomes the talk of the town, but when the same person tries to atone, it’s disregarded. Whichever risks he took during his trading days, Ketan suffered for them. Not only did he return all the borrowed money, but he also ensured that he stayed in the country and followed the judicial system’s orders. Ketan has faced all his allegations bravely and has been attending to all the cases that were filed against him with great patience.
Everyone deserves a second chance, and more so, the person who has tried to make things right and has followed all the orders given to him by the law. This is very important that everyone should know how Ketan has followed the law and did the best he could to follow law and order. India has seen worse, especially with people who have fled the country after taking loads of money that belonged to the country. On the flip side, Ketan returned a big chunk of money and faced legal punishment loyally and most importantly never intend to run out of India. His truthfulness and law-abiding nature need to be brought forward.