Revealing the Truth about the 40,000cr Stock Market Scam

AHMEDABAD, India - April 8, 2023 - PRLog -- The financial scams that took place in India are known to everyone in this country. How crores of money were involved and lost in the various scams and how the lives of individuals were affected, are the incidents that the people of this country can never forget. One such scandal is the Ketan Parekh Stock Market Scam. The online content claims the amount involved in this scam was 40,000 cr!

Read this article till the end to reveal the "true" facts about the 40,000 Cr stock market scam.

Why was the 2001 stock market scandal exposed as a 40,000 cr scandal?

Ketan Parekh was also known as the ITC Bull of his time for his ability to predict the trading pattern of ITC accurately. He was a firm believer in the ICE industry during the dot-com boom years of 1999 and 2000.

Various investment firms, foreign corporations, and banks entrusted him with their money while Ketan Parekh commanded the stock market from 1999 and 2000. He began by acquiring MMCB shares to gain the bank's trust when he aimed for a loan in the form of Pay Orders. In March 2001, MMCB issued pay orders of around rupees 137 crores for Ketan's companies.

In 2001, the RBI stepped in and gave the BOI the bouncing pay orders back. Due to a lack of funds, MMCB could not process the payments and was designated a defaulter by the RBI, costing the bank rupees 137 crores.

What are the unknown facts behind the amount involved in the Ketan Parekh Scam?

The events that followed after the interference of RBI are well-known: Ketan was arrested and tried in court. He served time in prison and was prohibited from trading in the ISE for 14 years.

As the online contents say this was a scam of 40,000 cr, which is completely a baseless statement because during 2001 even the whole stock market's valuation was not this huge! The biggest stock market scam that India has seen, the Harshad Mehta Scam is itself of 5000 Cr.

Only his close ones know how he has reimbursed the greater part of the acquired assets and satisfied his commitments as set by the Supreme Court with a couple of transactions as yet being investigated.

It's time to think about the impact of spreading false information and look for the truth instead of spreading baseless rumors.
To know more visit https://ketanparekhstory.com/