“5 Shocking Scandals That Shook the Indian Stock Market: From Ponzi Schemes to Insider Trading, the Indian stock market has seen its fair share of fraud and scandal over the years. In this blog, we explore five of the most infamous fraud stories that rocked the Indian stock market, including the Satyam Computer Services Scandal, the NSEL Scam, the Harshad Mehta Scam, the Ketan Parekh Scam, and the Sahara India Pariwar Scam. Learn about the schemes, their impact on the market, and the consequences for those involved. These scandals serve as a reminder of the importance of transparency, accountability, and strong regulatory oversight in the world of finance.”
Here are 5 fraud stories related to the Indian stock market:
Satyam Computer Services Scandal:
In 2009, the founder and chairman of Satyam Computer Services, Ramalinga Raju, confessed to falsifying the company’s financial statements and inflating its profits by over $1 billion. This revelation shocked the Indian stock market, and Satyam’s shares plummeted by 80% in one day. For Details Click here
National Spot Exchange Limited (NSEL) Scam:
The NSEL scam was uncovered in 2013, where the company was found to be running a Ponzi scheme that involved the sale of non-existent commodities to investors. The scam involved the misappropriation of over INR 5,600 crores, making it one of the biggest scams in Indian history.
Harshad Mehta Scam:
Harshad Mehta, a stockbroker in the 1990s, was found to have manipulated the stock market by using illegal means such as using fake bank receipts to buy stocks. He was able to create a bull run in the stock market, which led to a significant increase in the Sensex. However, his scam was uncovered, and he was arrested in 1992.
Ketan Parekh Scam:
Ketan Parekh was a stockbroker who was involved in manipulating the stock prices of various companies by creating a nexus with company promoters and bank officials. He was able to create a significant increase in the stock prices, but his scam was uncovered, and he was arrested in 2001.
Sahara India Pariwar Scam:
In 2011, the Securities and Exchange Board of India (SEBI) accused Sahara India Pariwar of raising over INR 24,000 crores from investors through illegal means. The company was accused of issuing bonds that were not registered with SEBI, which is a violation of Indian securities laws. The scam involved the misappropriation of funds collected from investors, which led to a court case that lasted for several years.
The Power of Stocks Sunday Stories” is a series of weekly blog posts that explores the fascinating world of stocks and investing. Each Sunday, we share a new story that showcases the power of stocks and how they can transform lives. From rags to riches stories of successful investors to the stories of companies that started small and grew to become global giants, these Sunday stories will inspire and inform readers about the potential of investing in the stock market. We will cover a wide range of topics, from the basics of stock investing to advanced strategies for maximizing returns. Join us on this journey of discovery and learn how you too can harness the power of stocks to achieve your financial goals.