Ketan Parekh Net Worth
Ketan Parekh Net Worth: After Harshad Mehta, Ketan Parekh is one of the stock traders’ scam headlines. He ran scams amounting to over one million rupees.
In India’s long history of stock marketing, one scam that rocked SEBI and other investors were the Ketan Parekh scam. He had executed the scam with so much planning and believed he was making money many times over from the stocks he was manipulating. For many years, investors viewed Ketan Parekh as a “Midas” who would make a profit for whatever he touched. But less than two years after going public, it has deceived so many investors and banks that even today, its work and planning is a case study in universities and among future investors.
It was infamously known as the Bombay Bull during the last decade of the previous century. Ketan Parekh was an apprentice to Harshad Mehta, famous for committing the 1992 stock market scam. By profession, Ketan Parekh was a chartered accountant and started working in the 1980s to run his family business NH Securities. It was a brokerage firm founded by his father. Through his experience working here, he understood all the tips and tricks for investing in stocks and how investors’ minds work in this process.
In his prime, Ketan Parekh manipulated stock prices so much that he gained immense trust from other investors. Thanks to this financial growth, he forged many connections within the Bollywood fraternity and political circles. Along with Kerry Packer, a billionaire Australian entrepreneur, he founded KPV Venture with a fund limit of $ 250 million to invest in exciting new startups.
Ketan Parekh Scam
By studying his investing style, it became clear that Ketan was interested in the information, communication, and entertainment industry. During its peak years, 1990 to 2000 was also when the dot-com boom began, bringing in a lot of money for these industries. During this period, many prominent entrepreneurs and companies donated money to Ketan to make it work. Given his accurate predictions and extensive knowledge of the market.
Ketan went public on the Calcutta Stock Exchange mainly because he lacked strict rules and compliance like the BSE or the NSE. He also worked with many brokers and gave them the commission to help with information and operations. With that much cash on hand, you would buy stocks of lesser-known small companies, and their stock prices would peak. Suddenly these companies were having a lot of talks. Once the price hits a level, it would sell and make a lot of profit.
He also had his tricks for getting money from banks and therefore moving stock prices. A well-known example is when he bought the shares of Madhavpura Mercantile Commercial Bank to gain the bank’s trust and then approached them for a Pay Order format loan.
Money orders work the same way as checks but are issued by the bank when the customer pays a small amount in advance to the bank. When he managed to manipulate the stock prices of this bank successfully. He approached other banks and promised to pay the order with them and collect more loans. In total, his loan amounted to more than INR 750 million.
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