If you are a trading enthusiast, you might be well aware of the world-famous 2001 stock market scam involving the name of ITC Bull, Ketan Parekh. It was the case that changed the whole world of the stock market. But do you know the true facts behind the Ketan Parekh stock exchange fraud case? You may definitely say yes, but you need to understand that every story has two flips. So here, we’ll enlighten the true facts associated with the Ketan Parekh Scam that you may not know!
There was a time in which every child knew the name of Ketan Parekh. He was also popular as the ITC Bull and the God for many small investors. An out-of-sorts incident changed the image of the persona overnight. However, he started his career in the 1980s, working with his father and uncle in his family-run business, Narbheram Harakchand Securities (NH Securities). It was a brokerage firm that was established by his grandfather in the pre-independence era. Professionally, he was a Chartered Accountant who cleared the toughest exam of that time in 1985.
He was someone who had a sharp mind and a photogenic memory. With a keen interest in the financial sector, Ketan soon carved a niche for himself and became the master of trading. He was popular among investors for predicting accurate ups and downs of the market.
Ketan was a risk-taker, unlike his father, who was willing to invest in new ventures. In the late 1990s and early 2000s, dot com boom years, he saw the potential in software and telecom companies and worked hard to understand their plans and growth prospects. As a result, he gained the trust of many small and big firms and borrowed a huge amount of loans from different banks.
However, the global bear hammering on ICE stocks in 2001 turned the tide on his fortunes. He was trapped in a payment crisis, causing him to default on his payment obligations to banks and face legal consequences. After this incident, Ketan is widely known as a convicted scammer who served years behind bars and was restricted from trading.
Although the majority of people know that Ketan is a rogue investor, maligned information on newspapers & internet latches people’s attention. But very few people are aware of the efforts of Ketan that he made from the beginning to make things better. It has been more than two decades, but he never comes in front of people to reveal his side of the story.
He firmly believes that the risks he took were necessary, but he’s aware of the impact his losses had on financial institutions, investors, and the Indian economy. In his ultimate goal to return the money he had borrowed and lost, Ketan suffered a lot, but he fought tooth and nail and followed all the penalties of the court. Unfortunately, all his amends are in vain as people still misunderstand him and remember him for the allegations. He hopes to tell the facts of the scam, including his roller coaster journey, the speculations he faced, people’s negative judgment, and the huge financial loss he’s trying to cover. Ultimately, his story is a precept for us; it’s easy to judge someone on a negative step but hard to find the true facts!