Any person who has been investing in the stock market is well aware of Ketan Parekh’s name, which shook the nation overnight in 2001. Ketan Parekh garnered so much attention at that time because he was involved in one of India’s biggest Stock Market scams. Even though several people know about the scam, only a few know about the real story behind that. With that being said, let’s delve deeper into some facts and unwind the infamous Ketan Parekh 2001 scam.
Ketan Parekh was a famous stockbroker who earned the nickname “ITC bull” after establishing himself in the Indian stock market. He started his career assisting his father and uncles in the family-run business Narbheram Harakchand Securities. While working there, he also cleared the Chartered Accountancy exam in 1985 and later developed a knack for trading.
The Ketan Parekh Scam that took place in 2001 exposed the weaknesses in the country’s framework, which later became the reason for high security and a process change. Ketan Parekh was a born risk-taker and believed in the booming ICE industry, so several investors had faith in him and his estimates. Moreover, other financial institutions, multinational companies, and entrepreneurs trusted him with their money. However, Ketan Parekh was accused of introducing a stock market manipulation scheme. To explain that, he was accused of participating in insider trading in which he intentionally influenced the stocks of low-level companies so that investors relied on them, and when the companies earned a profit, he’ll get a cut. Other than that, the scam involved using a complex web of shell companies, insider trading, and circular trading to artificially inflate the stock prices of certain companies in the Indian stock market.
After being trapped in several speculations and false statements, Ketan Parekh never got a chance to express his side of the story. A few people know the efforts he has been making for the past two decades to make amends. But the real side of the story is still far from the folks that haven’t changed the people’s perspective on the scam.
However, Ketan Parekh was trapped and had no choice but to take some necessary steps at that time. He was aware that his decisions would greatly impact several financial institutions and the Indian economy. But he was also aware of the fact that he would return all of the borrowed money. However, he was arrested and fought for justice for more than two decades. Only a handful of people know that he repaid most of the borrowed funds; still, many transactions are under review.
Despite repaying most of the borrowed amount and accepting every single restriction placed upon him by the Court, people still see Ketan Parekh as a fraud. The reason behind that is people know what he did 20 years ago but don’t know about the measures he took to rectify what he did. Hence, people must get familiar with the reality and stop believing the claims or accusations made two decades ago. Ketan Parekh has enough skills and talent to analyze the whole trading business and fix any process flaws. He must be acknowledged for his skills and the fact that he faced all of the allegations bravely without denying anything that went against him.