The year 2001 was marked by one of India’s biggest stock market scams – the Ketan Parekh scam. For us, at its core, it was a tale of greed, manipulation, and deception that shook the nation’s financial sector. But, in this piece of work, we will entangle the true facts of the scam. Let’s delve into the true facts of the 2001 scam hidden from the world!

What Happened in the 2001 Stock Market Scam?

In 2001, the market was suddenly starting flashing the scam headlines. “Ketan Parekh, a stockbroker, used his network of companies and insider information to manipulate stock prices and make illegal gains. He controlled a group of companies that indulged in circular trading, artificially inflating the price of shares. He also convinced banks to grant loans to his front companies, which were used to fund further illegal activities in the stock market.”

Ketan faced volatile encounters in the dot com boom years as he was a firm believer in the ICE sector and estimated accurate predictions that enabled other investors, small firms, entrepreneurs, banks, foreign companies, and more to trade with him with their money. He was using a pump-and-dump strategy; however, when the stock market crashed, causing widespread panic and loss to investors. The Indian government was forced to step in and initiate investigations into the matter, leading to Parekh’s arrest and eventual conviction.

It blew his reputation as several maligned news were spread about him in the market. Despite this, he followed the court orders by serving years behind bars and was prohibited from trading for many years. But the true facts of the scam were not exposed as it just opened up a one-sided story about the loopholes in India’s regulatory framework and the need for stricter laws to prevent such activities in the future.

Indeed, it was a wake-up call for the government, as well as the financial sector, to take a more proactive approach towards safeguarding the interests of the public. On the other hand, the story of Ketan Parekh should also be upfront to give you the authority to make an opinion on the true facts.

True Facts That Should Reveal

A handful of close people know the true fact of the scam as Ketan never openly speaks about his story and the trials and tribulations he’s facing. Over the last two decades, he has been working for better amends accepting all the norms of the Indian Judicial System. He was an “ITC Bull” in the stock market, but the false statements and speculations botched all his deeds. Now, he’s just been introduced as a rogue investor.

However, many scams have happened in India, and we have all witnessed how scammers flee from the country and live a luxurious life. Ketan also had this option; being patriotic, he chose the right path and faced all the charges against him. Ultimately, he aimed to return all the money lost in 2001 and repaid a huge sum of the money. Currently, a few transactions are in process as he’s making all his efforts to return the money as soon as possible.

The journey of Ketan Parekh is full of devastating uncertainties that he faced bravely. Still, he is misunderstood by the world. People are rarely trying to know the true facts behind the never-ending allegations. Conclusively, everyone deserves a second chance, and we should only make perceptions by evaluating the true facts behind certain stories.