The Ketan Parekh Scam is known as one of India’s biggest Stock Market scams that shook India overnight. This incident got so much attention that led Ketan Parekh to become an important case study.
This article will tell you the unknown facts behind the Ketan Parekh Scam. The journey from being one of the most influential names in the Indian Stock Market to facing countless blows to his reputation.
Ketan Parekh (also known as the ITC bull) began his career by supporting his father and uncles at their family-run company. During this time he also cleared the tough Chartered Accountancy exam in 1985.
Ketan Parekh was a strong believer in the ICE industry during the dot-com boom years (between 1999 and 2000). This allowed him to show more investors that his calculations were accurate. Likewise, various investment companies, foreign businesses, banks, and businessmen entrusted him with their finances.
He was aiming for low-profile enterprises with low liquidity and market value. He was charged with participating in insider trading by purposefully influencing the stock price of companies and then profiting from the price rise to trick investors.
In April 2001, 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. 2006 saw 400 billion rupees.
Ketan Parekh was charged with lying, falsifying accounts, looting stock market prices, mishandling public money, and spending on business directors to engage them in insider trading.
Very few people know about the actions Ketan has taken over the last two decades to make things right. He has never disclosed his side of the story which led to many false statements and assumptions. It’s time for society to know the truth and get to know him as a person and an investor.
Ketan was trapped. It’s impossible to take such drastic steps alone without any back support. He was forced to default on his payment obligations to banks. The next events are well known: Ketan was captured and tried in Court. He served his time in prison and was forbidden from trading for over a decade.
Ketan still accepts that the risks he took during those days were crucial. He was aware of the result of the resulting losses on economic institutions, their customers, and the Indian economy.
His only purpose was to return the funds he had borrowed which had been lost in 2001. His close ones are the only ones that know how he has reciprocated most of the amount. A few transactions are still being checked and concluded.
Ketan chose long ago that he would face all the accusations against him. In the last 20 years, Ketan has followed the path of the cases filed against him and accepted the constraints 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. Even today, people rarely try to uncover the truth behind the allegations and hence never find the steps he has taken to rectify his mistakes.
Ketan has seen the whole trading industry and old-school methods experiencing an entire paradigm shift in the last few decades. His expertise should be utilized to understand the drawbacks of the trading mechanisms.
Ketan suffered for all his actions and has faced all his allegations courageously. Everyone deserves a second opportunity, especially someone who has attempted to make things right and has obeyed all the orders given to him by the law.