Harshad Mehta was a notorious Bombay stock trader who defrauded banks and used the money to artificially influence the price of shares on the Bombay Stock Exchange (BSE). He took advantage of flaws in the Indian banking system and stock market to perpetrate what is today regarded as India’s largest ever securities fraud. Harshad Mehta’s Rs. 4000 crore securities fraud will be worth Rs. 24,000 crores in 2020. In 1998, Harshad Mehta was convicted of his crimes and sentenced to prison; he died of a heart attack in 2001.
His Quick Biography
Harshad Mehta was born in Paneli Moti, Rajkot, Gujrat, on Thursday, July 29, 1954 (age 47 at the time of death). His father ran a small textile business in Kandivali, Mumbai, where he spent his early childhood years. Harshad’s family thereafter relocated to Raipur, Chhattisgarh, where he completed his education. In 1976, he returned to Mumbai and received his B.com from Lala Lajpat Rai College.
Career Of Harshad Mehta
Let us tell you that after finishing his schooling, Harshad Mehta worked as a salesperson for an insurance business. After a few days there, he went to work for a brokerage firm, where he learnt everything there was to know about the stock market. When he had fully grasped all of the stock market’s techniques, he founded his own company and became a member of the Mumbai Exchange in 1984.Let us tell you that Harshad Mehta dominated the newspaper and news headlines in no time, and all of the major industrialists were eager to meet and collaborate with him. Harshad’s name was gaining a lot of traction in the stock market, and everyone was amazed at how far he had come in such a short period of time.
Securities Scam of 1992
Harshad Mehta, a stockbroker from Bombay, had become a household figure on Dalal Street in the early 1990s until being prosecuted with a securities fraud in 1992, thereby ending his bull run.
Harshad Mehta was known as the ‘Big Bull’ of Dalal Street or the ‘Amitabh Bachchan’ of the Indian stock market, a moniker he obtained after becoming a famous stockbroker and living a flashy lifestyle.
Harshad Mehta effectively manipulated stocks by unlawfully collecting money from many banks using fake bank receipts, as several financial journalists who covered the scheme recall. He set up a fraud cycle including major institutions such as the State Bank of India (SBI) and the National Housing Bank (NHB) (NHB).
The stock market was transformed in 1992 as a result of a securities scam of over Rs 4,000 crore – much over Rs 20,000 crore when adjusted for inflation in today’s money. To expand the Sebi’s regulatory capabilities, stricter laws were enacted.
The stock market has seen significant changes, including a shorter settlement cycle, a lower minimum balance, and internet transactions, among other things.
However, that was only one aspect of the ruse. Mehta also took advantage of flaws in the country’s banking system, some of which still persist today.
Between April 1991 and April 1992, the Sensex rose from just over 1,000 points to nearly 4,500 points. Harshad Mehta misappropriated millions of crores earned from banks into the stock market during this time.
When senior journalist Sucheta Dalal exposed the scam, it was revealed that Harshad Mehta had manipulated stocks by using banking loopholes. The stock market saw a carnage shortly after the scheme was disclosed, severely damaging Mehta’s holdings.
Movies and Web Series by Harshad Mehta
When the Harshad Mehta scandal broke, various films based on his life were released, as well as a slew of online series. Let us also mention that in the year 2020, Sony Liv will air a web series based on Harshad Mehta’s life titled 1992 Scam – The Harshad Mehta.
On Sony LIV, the film “Harshad Mehta: A Man Behind the Scandal,” based on his life, premiered. In the film, Mehta is found guilty of a crime he did not commit. Harshad Mehta’s experiences influenced the storey. He was interested in the stock market as a former banker. He travelled to the United States to study law in the 1980s.
The film is based on Mehta’s life and death, which happened in real life. He was imprisoned in a Mumbai prison after being convicted of crimes against his mother and wife. The film’s premise was to promote foreign investment in order to boost the stock market and the government’s economy. As a result, Harshad Mehta’s picture became an overnight sensation. It was the biggest hit at the movie office in 1991, and it’s still going strong today.
The film is based on the real life experiences of mehta’s brother Ashwin. Mehta was involved in a scam where he defrauded the banks by promising to pay them higher interest rates in exchange for their money. Fortunately, this entrepreneur became an outlaw and is now a famous stockbroker. While Mehta’s crime is not a new crime, the case is a public one.
Harshad Mehta death
Harshad Mehta, a ruthless and astute stockbroker, died in a mysterious manner after being found guilty in a case and sentenced to five years in prison. For your knowledge, Harshad Mehta was incarcerated at Thane jail when, late one night on December 31, 2001, he felt discomfort in his chest and was transported to Thane Civil Hospital, where he died. As a result, he only lived to be 47 years old.
Harshad Mehta, the uncrowned king of the stock market, was undoubtedly a keen thinker, but he used his sharp mind in the incorrect way to make money. If he had followed these suggestions, his name would no longer be associated with any kind of con, and he would be remembered in a positive light among the public.
The film is based on the real life experiences of mehta’s brother Ashwin. Mehta was involved in a scam where he defrauded the banks by promising to pay them higher interest rates in exchange for their money. Fortunately, this entrepreneur became an outlaw and is now a famous stockbroker. While Mehta’s crime is not a new crime, the case is a public one.