Harshad Mehta
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Harshad Mehta

Name :Harshad Shantilal Mehta
Nickname :The Big Bull & The Amitabh Bachchan of Stock Market
DOB :29 July 1954
(Age 47 Yr. )
Died :31 December 2001

Personal Life

Education B.Com
Religion Jainism
Nationality Indian
Profession Stockbroker
Place Paneli Moti, Saurashtra State (now in Gujarat),  India

Physical Appearance

Height 6 feet
Weight 78 kg (approx.)
Eye Color Black
Hair Color Black

Family Status

Parents

Father- Shantilal Mehta (Businessman)
Mother- Rasilaben Mehta

Marital Status Married
Spouse

Jyoti Mehta

Childern/Kids

Son- Atur Mehta

Siblings

Brother- Sudhir Mehta, Hitesh Mehta & Ashwin Mehta (Advocate)

A controversial stockbroker with roots in Bombay named Harshad Mehta fraudulently withdrew funds from banks and used them to inflate share prices on the Bombay Stock Exchange (BSE). He committed what is currently regarded as the largest Indian securities scam ever by taking advantage of flaws in the country's banking and stock markets. In 1998, Harshad Mehta was found guilty of his crimes, imprisoned, and died in 2001 from a heart attack. In 2020, the 4,000 crore rupee Harshad Mehta securities scandal will be worth 24,000 crores.

Harshad Mehta was born on July 29, 1954, in Paneli Moti, Rajkot, Gujarat (he was 47 years old at the time of his death). His father used to manage a small textile shop in Mumbai's Kandivali, where he spent his early years. Harshad finished his education when his family later relocated to Raipur, Chhattisgarh. He moved back to Mumbai, where in 1976, he gained a B.Com degree from Lala Lajpat Rai College.

Family


Middle-class Gujarati Jains were the parents of Harshad Mehta. Sudhir Mehta, Hitesh Mehta, and Ashwin Mehta were his three siblings. His mother, Rasilaben Mehta, was a stay-at-home mom, while his father, Shantilal Mehta, owned a small textile business. Ashwin Mehta, Harshad's brother, worked as a stockbroker for Harshad. At the age of 50, Ashwin completed his legal education and took on all of the cases that were still pending against him.

Career

In addition to pursuing a B.Com at Lala Lajpatrai College in Mumbai, Mehta worked several odd jobs, including selling cement or classifying diamonds. He was a salesman with the New India Assurance Company Limited as well. He became so interested in the stock market during this time that he quit his previous job and began working for P. Ambalal, a stockbroker connected to the Bombay Stock exchange, in 1980. (BSE). He spent a year there before joining a brokerage company called Harjivandas Nemidas Securities in 1981 to work in lower-level clerical positions.

Harshad founded his own stock brokerage company, GrowMore Research and Asset Management, in 1984 after learning about how the stock market operated. At this company, he first encountered broker Prasann Pranjivandas, and he later came to think of him as his "guru." by 1990, Harshad had already established a reputation that encouraged many people to contribute to his company and use his services.

He quickly rose from poverty to greatness and amassed millions of crores of rupees via his activities. He owned a sea-facing 15,000 square-foot penthouse in Worli, Mumbai, and a collection of opulent vehicles, including an imported Toyota Lexus worth 40 lakh rupees. The media had enhanced his reputation to the point where he was called "The Amitabh Bachchan of the stock market" and "The Big Bull," among other nicknames.

 

How Harshad Mehta Changed the Face of Indian Finance


Harshad Mehta’s impact on the Indian finance industry cannot be overstated. He was a visionary who saw opportunities where others only saw obstacles. His innovative ideas and unconventional methods made him stand out from other businessmen of his time.

Mehta was credited with introducing new financial instruments like ready forward deals, which allowed banks to lend securities to each other for short periods of time. This led to increased liquidity in the market and helped boost trading volumes.

He also promoted the concept of dematerialization of shares, which eliminated paperwork and streamlined the process of buying and selling stocks.

This revolutionized how people invested in stocks and paved the way for online trading platforms that we have today.

Mehta’s success inspired a whole generation of investors who looked up to him as a role model. He proved that it was possible for someone from humble beginnings to rise up through hard work, determination, and strategic thinking.

Although his legacy is somewhat tarnished by his involvement in the 1992 securities scam, there is no denying that he changed Indian finance forever.

 

How Harshad Mehta Became the King of the Indian Stock Market


Harshad Mehta was a self-made man who rose to become one of the most successful stockbrokers in India during the 1980s and early 1990s.

He started his career as a small-time broker but soon realized that there were significant opportunities in manipulating the stock market.

Mehta’s success story began when he identified a loophole in Indian banking regulations that allowed him to borrow money from banks using securities as collateral.

He used this strategy to buy large quantities of shares, which he then sold at inflated prices, making huge profits.

His aggressive buying sprees often caused stock prices to soar, earning him the nickname “The Big Bull.” His charm and confidence also helped him gain access to powerful circles within the government and corporate world.

As his wealth grew, so did his power over the market. Mehta became influential enough to manipulate even large public sector companies’ share prices by spreading false rumors about their financial health.

Despite being embroiled in numerous controversies throughout his career, Harshad Mehta managed to build an empire worth billions before it all came crashing down with allegations of fraud against him.

 

The Securities Scam and Exposure of 1992


The Scam: Up until the early 1990s, banks were prohibited from making stock market investments. Due to his ties with bank executives, Harshad persuaded them to give him a direct deposit into his account in exchange for greater interest rates. Additionally, the banks created phony Bank Receipts (B.R.) in his name. He used to use the vast sum of money that he shrewdly obtained from banks to buy a select few shares, which would then raise the price of those shares.

As a result, the price of those shares would increase even further. This would entice additional investors to invest in those specific shares. For instance, in 1991, Harshad bought shares of the Associated Cement Company (ACC) and increased their value from 200 to 9,000 in just three months. He used to sell off his shares after the share price secretly rose sharply to collect an enormous profit.

Effects of the Fraud

The 1992 fraud severely impacted the nation's banking system and capital market. The Sensex, trading at 4467 points in January 1992 as the scam was being exposed, abruptly fell to 2529 points in August. The money market lost more than Rs. 1,000,000 crores as a result.

Regarding the Banking System


Banks were left with invalid B.R.s and a staggering loss of Rs. 4,000 crores after the scam was revealed. The previous chairman of Vijaya Bank, Mr. B.B. Shetty, who allegedly wrote false checks to Harshad Mehta, committed himself because of it.

Regarding the Political Climate


After the scam was revealed, several politicians, including RBI Governor S. Venkitaramanan, brokers like Pallav Sheth and Ajay Kayan, and business people like Aditya Birla, came under fire. The political climate also became more charged after Harshad Mehta gave a press conference in which he asserted that he had paid P.V. Narasimha Rao, India's Prime Minister at the time, Rs. One crore to remove himself from the scam case.

Conviction, Arrest, and Sentence


Harshad Mehta’s life was marred by controversy and his death was no exception. He passed away on December 31, 2001, due to a heart attack in Thane jail where he was serving his sentence for the securities scam of 1992.

After his death, many questions were raised about the circumstances surrounding it. Some believed that he was murdered while others attributed his sudden demise to stress and anxiety caused by the legal proceedings against him.

The aftermath of Harshad Mehta’s death saw mixed reactions from people. While some felt sympathy towards him and called for justice, others believed that he had received what he deserved for his involvement in the securities scam.

Despite being one of India’s most controversial businessmen, Harshad Mehta remains a polarizing figure even after his death.

Many continue to debate whether or not he should be remembered as a successful stockbroker who changed Indian finance or as a fraudster responsible for one of the biggest scams in Indian history.

Regardless of how one views Harshad Mehta’s legacy, there is no denying that his impact on Indian finance cannot be ignored. His rise and fall serve as cautionary tales about greed and its consequences in business.

 

In popular culture

Books


Mehta's life and his 1992 scam are covered in great detail by Sucheta Dalal and Debashis Basu in their book The Scam: from Harshad Mehta To Ketan Parekh.


Films and television

  • Scam 1992, streaming on SonyLIV and produced by Applause Entertainment is based on his life, which was inspired from Sucheta Dalal's book The Scam.
  • Actor Pratik Gandhi played Mehta. It is one most highly rated television shows in the world on IMDb.
  • The character Natwar Shah in movie Aankhein (1993), placed under scanner for a multi-crore scandal, was inspired by Harshad Mehta.
  • The Mehta scandal was portrayed in the Hindi movie, Gafla. It was premiered in Times BFI 50th London Film Festival on 18 October 2006.
  • Harshad Mehta was mentioned in the 2018 TV show Yeh Un Dinon Ki Baat Hai based on 1990s' Ahmedabad.
  • The Mehta scandal was portrayed in the Hindi Webseries, The Bull Of Dalal Street. It was premiered in Ullu App on 21 February 2020.
  • A Bollywood film The Big Bull (2021), starring Abhishek Bachchan, loosely based on his life and financial crimes.

 

Readers : 924 Publish Date : 2023-09-14 03:50:12