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Case Study Of Ketan Parekh Scam

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Case Study Of Ketan Parekh Scam
CASE I - Ketan Parekh Scam

Introduction:
The scam that lead to 176-point Sensex crash on day March 1st 2001 gave a major shock to the Indian Government, Indian stock markets and all the investors in the same way. Also since the Union budget was tabled only a day earlier and had been claiming for the growth initiatives in the future and also had prompted a further increase of 177 point on the Sensex. This dramatic crash in Indian stock markets had prompted Securities Exchange Board of India (SEBI) to take actions and investigate the volatility of Indian stock markets. SEBI further also had decided to investigate the books of various brokers who were earlier suspected of initiating this crash.
On the other hand, the Reserve Bank of India (RBI) had also ordered few banks to furnish their data on the capital market exposure. Media reports had also appeared regarding a particular private sector bank which had exceeded the prudential norms of its capital exposure, hence contributing further to the volatility in the stock market. This panic run continued and President Anand Rathi of the Bombay Stock Exchange (BSE) gave resignation which …show more content…
Known for maintaining very low profile, he has only dubious claim to the fame earlier in 1992, when he was accused for triggering the stock exchange scam. He was also known as the 'Bombay Bull' and he also had connections with the movie stars, the politicians and even the leading entrepreneurs from international markets like media tycoon of Australia, Kerry Packer, who had been partnered with KP in the KPV Ventures, a USD 250 million which was a venture capital fund that he invested only in the new economy companies. With his growth, KP built a large network of the companies, majorly in Mumbai, which were involved in various stock market
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