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Family :gujarati jain family Father : Mr Shantilal Mehta , a small businessman Harshad Mehtaµs childhood was spent in Mumbai « Later, the family moved to Raipur , Madhya Pradesh. Somehow Harshad Mehta did not find his future in Raipur and could not stay away from Mumbai¶s shiny life style.
After coming to Mumbai Harshad Mehta joined his 1st job as dispatch clerk in the New India Assurance Company. But his 1st love is always Stock market. Harshad Mehta¶s first love was stock exchange. During his work at new india he has started investing in stock market with his brother Ashwin Mehta. And after sometimes he has managed to get BSE broker¶s card. Who knows at that time that it was starting of great Indian scam!! Y Y Y Ä EXPLOITING THE LOOPHOLE IN THE BANKING SYSTEM
After investing in stock exchange Harshad Mehta found some wrong patterN on trades in stock exchange. He found that companies are not rising and falling as over their fundamentals, and he started manipulating HOW IT WAS DONE AND THE ROLE OF THE BROKER
He started manipulating one stock named
cc It was
rising , rising and rising only. But Harshad Mehta had reason for all the questions for its rising. Its ³Replacement Price Theory´. He was successful in explaining this theory to Indian public. But the fact had another side too. Mr Mehta started buying this ACC at mid 1990 and then he made it public. It was Harshad Mehta¶s trademarked style:1 He used to study fundamentals, 2 he used to buy in big quantity and 3 then he used to make it public. And demand of that used to rise like anything after recommendation of this Big Bull !! (
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Y Y Year 1991. Mr Harshad Mehta is now darling of Indian media. He was dream seller. He was not only Harshad Mehta now.. but he was The Harshad Mehta. Boss of ³Growmore Research and Asset Management ³. People know this personality as ³ The Big Bull´ of Indian stock exchange. Harshad Mehta thought different then others. The basic concept behind his view was very optimistic and somehow it was good for Indian ! too. He used to explain people that if
fundamental of some company is good it should go up and should always goes up. But excess of anything is evil. The dream of great Indian story was becoming greed generator for Indian public and for Mr Harshad Mehta too. At his peak, he lived almost like a celebrity in a 15,000 sq ft house, which had a swimming pool ,beautiful golf patch. He also had a crush for flashy luxurious cars and no wonder he used to have some of the best car of 1990¶s in his huge parking. Y Y Y Y ? His flashy life and charismatic personality was a problem for many Indian and international personalities. In 1992, 1st article came out against this dream merchant and the story was about 600+ Crores rupees scam !! it was written in article that Harshad Mehta had swiped 600 Crores. rupees from SBI. No one had clue at that time that it was starting of the most dramatic scam of Indian stock exchange. But fact was unknown till now . the amount is much more than what was said in that news article. As per that article Mr Harshad Mehta used ³Ready Forward Deal´ for this scam. As per this deal he used to take some short term loan from banks and used this money in stock exchange to rise the price is the security. Pure manipulation. As per Indian law it was not allowed to give such RF loan to any individual person by bank. So it was clear that more than one banks were involved in this scam. With this money mr Harshad Mehta used to make waves in Indian stock exchange. He was using this banks illegally to manipulate the stock exchange mechanism.
Y Y Y Y YYY YY !Y" Y# $ %Y & 'Y Y &#"Y "Y !$ %Y & '(Y YY$ )Y&Y Y (Y$ Y$Y * +YY !$ %Y& Y# $ %Y & 'Y' !Y # Y ' Y& Y& Y Y' !YY &Y "YY Y*& (Y Y & &Y &YY$Y "&+Y) Y!##Y" Y$Y ! Y* &#Y "$(Y Y Y Mr Harshad Mehta had one habit of showing off. Larger than life kind of personality can make the worst enemies for you. When he came to know this truth it was too late. When he got some finest luxurious of the world and he was giving some picture pose of him feeding bears in zoo, some big names like Anand Rathi and Krishnakant Damani were hurt badly it was not a good news for the big bull. Whole bear cartel is against Harshad Mehta now. Everyone knew that Harshad Mehta is getting money from somewhere. but from where? The bear cartel has exposed the truth behind the constant rise of this big bull. They have used almost all the resources they have. It was surprising to point out here that even this bear cartel was using same ³technique´ as Harshad Mehta used. But the difference was , public appearance. Bears cartel used the money from overseas " ! Y&Y & &Y &YY $& Y & 'Y" Y$Y% !(Y Y$Y&+Y !&Y,+ $-Y&Y* Y $& Y#&!Y '(YY
Y Y Y And on one not so fine day it was headline of Indian news paper regarding 4000 crore rupees scam in Indian stock market. Now Harshad Mehta was in trouble. As the scam was exposed the banks receipts (BR) value became almost zero. And it was enough reason for crash of some financial institutes which would lead Indian financial crises. Bear cartel was behind Harshad Mehta now. They filed as many cases as hey can against Harshad Mehta . They have used all their sources and made sure that Harshad Mehta would not get any bail. Y Y Y Indian Stock Market crashed like anything. It was one of the worst time Indian market have seen till day. Indian public faced tough times. Many suicidal notes were found near dead bodies of Indian stock traders. The big bull, The dream merchant, The Harshad Mehta is now The most hated person!! 4000 crore scam ,many financial firms were involved, many political parties were involved, many big names involved in the same case, but surprisingly only one man was trapped. Harshad Mehta. Y Y Y m Late 2001, place : Thane jail. The jail superintendent came to know about end of the bull era with news of Harshad Mehta¶s death. Reason was heart attack. But it was shocking to know that before he died, he
was proved innocent in all other cases against him, and ! in only one case..!!! That is how it happened. The chair person of Growmore Research and Asset Management died. And one Bull Run came to end. p &$ .Y +'Y& 'Y Y$Y /+Y Y& 'Y $'(Y #&Y &Y Y "" Y YY +& "## Y " Y$ )$ %(Y Y Y Y
