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Name - Harshad P Mehta
Born - 29 July 1953
Died- 31 Dec 2001
Profession- Stock Broker
Education- B.Com

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In early 80's he sought a job with stock broker P. Ambalal

Later he became Jobber on BSE for stock broker P. Shukhla

In 1981 he became sub-broker for stock brokers JL Shah and Nandlal Sheth.

In 1984, he started a company with his brother Grow More Research and Asset Management.

He took advantages of loopholes in banking system.

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-Ready Forward deal
-Bank Receipts

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Secured short term loan from one bank to another typically of 15 days.

Bank lends against government securities

Broker is used for such transactions for which he is paid commission.

Securities and payments were delivered through the broker in settle ment process.

In such settlements banks may not know who they are dealing with.

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Bank receipts serve three functions.

1. Confirm the sale of securities

2. States that the securities are held by the seller in trust for the buyer.

3. Acts as receipt for the received money by the selling bank.

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Mehta had by then swindled the banks of staggering Rs 4000 Cr

Holding banks of fake BR had to face losses.

BR was removed by RBI

The chairman of theVijaya Bank committed suicide.

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Sensex falls from 4500 to 2500

Losing 1,00,000 CR

Inability of the government to raise money in world market.

Overall scam : 4000 Cr

ACC shares raised from 200 to 9000

27 criminal charges

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He was arrested and banished from stock market.

Mehta and his brothers were arrested by CBI on Nov 9 1992 for allegedly misappropriating more than 27 Lakh shares of about 90 companies.

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https://www.youtube.com/watch?v=fmbYeOTdCQs