The Reality of the Infamous Ketan Parekh Stock Market Scam
Individuals who know Ketan Parekh recall him as a man who created his path with his daring vision and drive to think beyond the box. He never did what was anticipated of him; instead, he predicted the impossible and made it an actuality.
Who was Ketan Parekh?
Commonly known as the “ITC bull”, Ketan Parekh commenced his career in the early 1980s by administering his father and uncles at their family business “Narbheram Harakchand Securities,” started by his grandfather in the pre-independence era.
He prepared for Chartered Accountancy and he passed with flying colors in 1985. Ketan, who possesses an eidetic memory and a natural talent for numbers and mathematics, started working in the financial industry at a very young age.
About the Ketan Parekh Scam
Ketan Parekh’s used to purchase substantial assets from promoters at steep discounts and shift his focus to institutional investors. He was optimistic about the stock market. The Bombay Stock Exchange (BSE) increased security and fraud detection after the 1992 Securities Scam. So Ketan Parekh started trading on the Kolkata Stock Exchange, which had neglectful restrictions.
Institutional investors also contributed money in the form of loans and pay orders through mutual funds, hedge funds, insurance companies, P/E funds, and banks including Global Trust Bank and Madhavpura Mercantile Cooperative Bank. He purchased Madhavpura Mercantile Cooperative Bank shares in order to sway the bank’s lending decision in his favor.
The Reserve Bank of India interfered in 2001 and returned the bounced pay orders to the Bank of India. Due to a lack of money, MMCB was unable to clear the payments and the RBI labeled MMCB a defaulter. BOI suffered a loss of Rs. 137 crores.
The truth behind the 2001 Ketan Parekh Scam
Ketan accepted promptly recognized his mistakes and made amends to all of his creditors. The courage of facing misfortune after misconduct is a doing that is not greatly recognized by society. Ketan dealt with all the lawsuits filed against him and followed all the court orders without vanishing from the country like other scamsters.
Unfortunately, the media called out Ketan for the scam and cornered him alone. There is not enough word around about the politicians, bankers, and others who were a part of the case and got away without getting punished. It was all altered into a one-person scam, which is absolutely impossible.
Ketan has never stepped out to clarify his side of the tale, which has resulted in countless inaccurate statements and assumptions. But the rest of the world needs to know The Reality of this infamous Stock Market Scam and the true side of Ketan Parekh Story.