Harshad Mehta The Man who started the indian stock market revolution

 



The “big bull” and Indian stock market trader Harshad Mehta was one of the high-profile players in the Indian stock market scam of 1992, which went in to the history books as the one of the biggest financial scandals in Indian history. His meteoric rise and even more meteoric fall have been the stuff of public fascination and gossip ever since. This blog is going to take you through Harshad Mehta’s life and times – how he rewrote the Indian capital market landscape, for better or for worse. 

The Rise of Harshad Mehta

Harshad Mehta was born in 1954, in Mumbai and started out as a small time stockbroker. He began working on the stock market in the late 1970s and encountered a rocky beginning. But his big break-moment came in the early 1990s, when he stumbled upon a way to game a loophole in the banking system. This access allowed him to manipulate the stock market in his favour, and, by so doing, created one of the most spectacular bull runs in India.

Mehta’s game plan was a combination of plain old market smarts and financial engineering. He used that influence to create artificial demand for some stocks, causing them to surge. His favourite ploy was the so-called “ready forward” (RF) contract, an overnight loan collateralised by securities between banks. It was those trades that Mehta used to siphon the cash reserves of lots of banks and dump that money into gobs of stock. And his meteoric success with stocks like ACC, Zee Telefilms and others made him a star overnight.

CLick Here For Full Article 






Comments

Post a Comment

Popular posts from this blog

How to Login EPFO

Image
  How to Login EPFO  log in to your EPFO (Employees’ Provident Fund Organisation) account, follow these steps: Visit the EPFO Member Portal : Go to the official EPFO member portal website. The URL for the EPFO member portal is https://www.epfindia.gov.in/site_en/index.php . Click on ‘For Employees’ : On the homepage of the EPFO website, look for the section titled ‘For Employees’ and click on it. Choose ‘Member UAN/Online Services (OCS/OTCP)’ : Under the ‘Services’ section for employees, click on ‘Member UAN/Online Services (OCS/OTCP)’. Enter Your UAN (Universal Account Number) : You will be directed to the EPFO login page. Enter your UAN (Universal Account Number), which is a unique number assigned to each EPF member. Ensure your UAN is activated; if not, you need to activate it using the steps provided on the portal. Enter Password : Enter your password. If you have not set a password yet or have forgotten it, you can reset it using the ‘Forgot Password’ option on the...
Read more

Is Buying a house Better than renting in India

Image
  Is Buying a house Better than renting in India Buying a house  versus  renting  is a significant decision, and it depends on various factors. Let’s explore the pros and cons of both options in the context of India: Renting a House: Lower Rent : Renting typically has lower monthly costs compared to home loan EMIs. For instance, in the NCR region, you can rent a ₹1 crore, 3-BHK house for ₹15,000-25,000, whereas the EMI for a similar property with a 40% down payment at 7% interest would be ₹46,500 per month over 20 years. No Large Down Payment : Renting doesn’t require a substantial down payment upfront. You usually need to provide a 2-3 month security deposit. No Allied Costs : As a tenant, you don’t have to worry about property tax, maintenance, repair bills, or parking costs. Ease of Job Sifting : Renting provides flexibility if you need to shift cities or countries for work. Location Flexibility : You can choose a rental location based on proximity to your w...
Read more

Meerut

Image
  Meerut Meerut, located in the Indian state of Uttar Pradesh, is a city steeped in  history  and cultural significance. Its origins date back to ancient times, with references in Hindu scriptures and historical texts. The city is perhaps most famously known for its pivotal role in the 1857 uprising against British colonial rule, often referred to as the First War of Indian Independence. The revolt began in Meerut when sepoys in the British East India Company’s army revolted against oppressive policies, marking a significant moment in India’s struggle for freedom. In contemporary times, Meerut is a bustling urban center known for its thriving sports goods  industry . The city produces a wide array of equipment for various sports, particularly cricket and hockey, earning a reputation as a major hub for sports manufacturing. Meerut’s economic landscape also includes agriculture and education, with numerous colleges and universities contributing to the region’s developm...
Read more