harshad-mehta-bull-run rajkotupdates.news Harshad Mehta, the Big Bull, the person who revolutionised the face of the Indian stock market, is also infamous for conducting one of the greatest financial scams in Indian history, which was exposed in a Times of India article by journalist Sucheta Dalal. The total sum involved in the scam was almost Rs 4,500 crores.

Whos is harshad-mehta?  harshad-mehta-bull-run rajkotupdates.news :

I met Harshad “Big Bull” Mehta in his Maker Chamber office in Mumbai’s Nariman Point in 1998, six years after the share market scandal emerged.

The context: while the broader index, the 30-share Indian Stock Exchange Hypersensitive Index or Sensex, was declining, a few equities, including BPL, Videocon, and Sterlite, were rising every day. Since his securities trading licence had been banned, there were strong speculations that Mehta was back at it, this time as an advisor.

Mehta was born in harshad-mehta-bull-run rajkotupdates.news, Rajkot, Gujarat, on July 29, 1954. He spent a portion of his early years in Mumbai before moving to Raipur, Chhattisgarh, with his family. He returned to Mumbai and enrolled in the B.Com programme at Lajpat Rai College.

Mehta went on to pursue a variety of odd jobs before landing a job as an insurance sales executive with a company called New India Assurance Company Limited (NIACL) in Fort, Mumbai.

What exactly is a bull run? harshad-mehta-bull-run rajkotupdates.news:

The term “bull market” refers to a time when stocks are trending upward. In layman’s terms, it suggests that equities are chasing an upward spike faster than predicted.

In a bull market, investor sentiment is positive; people are highly optimistic concerning the markets, and they choose to park their money in equities, which they regard as a safe haven. This optimism benefits mid- and small-cap enterprises the most.

Early Years – From Salesman to Best Jobber harshad-mehta-bull-run rajkotupdates.news

He worked as a Jobber for Prasann Pranjivandas Broker, whom he considered his master, in the early 1980s. Within a year, he had established himself as one of the finest jobbers within the Indian stock market.

However, dissatisfied with the paltry commissions paid to jobbers, he decided to become a BSE stockbroker himself and launch his own stock advising firm, ‘harshad-mehta-bull-run rajkotupdates.news Research and Asset Management,’ with his brother Ashwin Mehta.

Many influential and wealthy individuals began investing with his firm, and Harshad Mehta quickly became the unofficial model boy of the Indian stock market.Following graduation, he did odd occupations such as hosiery salesperson, cement salesman, and diamond sorter. He later worked for New India Assurance Co. Ltd.

Prelude: The 1980s Indian Money Market harshad-mehta-bull-run rajkotupdates.news

The Indian financial sector was a market where the RBI’s bonds, treasury bills, and other fixed-income assets were traded. At its foundation, the arrangement was straightforward: if one bank wanted to sell securities to another, it would engage a broker to facilitate the transaction in exchange for a small commission.

Money market brokers witnessed a significant shift between 1987 and 1992.  harshad-mehta-bull-run rajkotupdates.news With higher education and technology, they began imitating foreign banks such as Citibank. Brokers like Harshad Mehta and his brother Ashwin Mehta have unparalleled expertise, knowledge, and understanding.

The Swindle harshad-mehta-bull-run rajkotupdates.news

The scandal occurred at the time that India’s economy began to open up. The 1991 LPG (Liberalisation, Privatisation, and Globalisation) Policy created numerous opportunities for business and innovation. The policy created its own set of flaws in the country’s financial markets.

Banks were not permitted to invest in the stock market in the 1990s. To meet their monetary needs, they would borrow from the Reserve Bank of India (RBI) or from other financial institutions in a Ready Forward Deal (RFD). This occurred via government securities, often known as government bonds (G-Sec).

The lending bank would lend money and accept government bonds from the lender’s bank for a maximum of 15 days in a Ready Forward Deal (RFD).

harshad-mehta-bull-run rajkotupdates.news The funding bank would be paid back with interest. Banks, on the other hand, had no idea which bank to approach if they needed to lend or borrow. As a result, transactions between banks took place using ‘brokers’ who had market expertise and contacts. Harshad Mehta acted as an agent in this case.

2013-14: India regains its bearings under the BJP : harshad-mehta-bull-run rajkotupdates.news

On May 13, 2014, the SENSEX touched 24,000 points as a result of exit poll findings indicating that the BJP would form a legislature at the centre. For a long time, India had hoped for a leader such Narendra Modi to overhaul the country’s financial predicament.

Following this trend, the SENSEX reached 26,000 on July 7, 2014, while the government announced a budget that might shift the country’s trajectory towards becoming an industrialised one.

By the Reserve Bank lowering its repo rates, the SENSEX surpassed 30,000 on March 4, 2014. This incident increased market liquidity, and loans became more affordable.

Final word

harshad-mehta-bull-run rajkotupdates.news was the first ever-optimistic great bulls of the Indian stock market, according to many, and a scammer and con artist to others. Many say that he just took advantage of flaws in the existing dirty Indian banking system, but the fact is that he used forged bank receipts to defraud Indian banks valued crores of rupees.

The 1992 Harshad Mehta fraud may have been avoided if banks (by not issuing checks in the broker’s name) or the RBI (appropriate bank auditing) or even Harshad Mehta himself (by simply working as a broker in the Indian money markets) had not been involved, but the allure of high-return-in-short-term draws us all. We’re all looking for that 4,400% gain in three months.