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Why a 1000-cr scam was publicized as a 40,000-cr scam?
Ketan Parekh is one of the most influential players in the Indian stock market and today i will uncover why a 1000-cr scam was publicized as a 40,000-cr scam?
The articles that led me to start my research mentioned very odd statements, most notably why a 1000cr misconduct was publicized as 40,000 cr. I am going to cover all the details in my article.
Why was the scam publicized as a 40,000cr scam?
Ketan Parekh is one of the most influential players in the Indian stock market. However, you will only come across the 2001 stock market scam articles!
The more surprising element was the amount of the scam they all were mentioning! How can anyone say that it was a 40,000-crore scam when even the market's value was not this huge during the period when this incident came to light?
At that time, the Reserve Bank of India allowed merchants to obtain a credit of about 15 crores. In March 2001, Madhavpura Mercantile Commercial Bank issued pay orders of around Rs. 137 crores.
But in 2001, the Reserve Bank of India stepped in and gave the Bank of India the bouncing pay orders back. Due to a lack of funds, MMCB could not process the payments. MMCB was designated a defaulter by the RBI, costing the bank 137 crores.
How did this scam take place?
Ketan Parekh (http://ketanparekhstory.com/
Because there were no basic rules, Ketan Parekh traded on the Kolkata stock exchange. He would buy stakes in some lesser-known companies, causing their share prices to skyrocket.
The events that followed after the interference of RBI are well-known: Ketan was arrested and tried in court. He was prohibited from trading for over a decade.
If Ketan was prohibited then how can some videos claim that he was still active and manipulating the stock market?
It's time that people know how he worked relentlessly for years to return the money he owed. Following the court orders and being law-abiding citizen, only a few close ones know how he has repaid most of the borrowed funds with a few transactions still being reviewed.
Know more- https://ketanparekhstory.com/
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