Biggest stock Market scams in India?
Stock Markets trade in big money. The profits are big and so are loss.
Scams follow the same trends. Indian Stock Markets have seen many big frauds, some affect companies and some affected whole market.
List of biggest stock Market scams in India is:
- Harshad Mehta Scam: The biggest scam in Indian Stock Market. He took the money from banks to manipulate in market. Stock market saw the biggest rallies at that time and once his fraud was discovered markets crashed.
It is believed that money he made is still uncovered. Scam ruined investments of many investors and scam is estimated to involve around more than10,000 crore Rs.
He died in 2001 leaving behind unsolved enquiries. The actual impact of scam in monetary terms is still not finalised.
- Ketan Parekh: He raised the stock prices by doing circular trading between 1999 to 2001. He borrowed money from banks and invested in market. Currently Parekh is banned to trade in any segment of market.
Some believe he is still active through dummy accounts.
- RamaLingam Raju (Satyam Scam) :The scam broke the heart of many. Satyam was the India's top software company (3rd). Company had outsourcing business. The management manipulated the financial statements and presented dummy bank deposits.
The scam is estimated to involve a fraud of 6500 crore Rs.
Currently Satyam is bought by Tech Mahindra. Raju is out of jail on bail.
Harshad mehta is still a unsolved mystery. The scam ran in billions.
But surprising fact is the punishment was very low. Harshad Mehta died, Ketan Parikh and Raju both are out of jail.
No money taken back from them. Truly Indian Stock Markets are still in evolving state.