DO YOU KNOW THE REAL STORY BEHIND THE KETAN PAREKH SCAM?

Do You Know the Real Story Behind the Ketan Parekh Scam?

Do You Know the Real Story Behind the Ketan Parekh Scam?

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Former stockbroker Ketan Parekh was found guilty by the Securities Exchange Board of India, the market regulator known as SEBI, of market manipulation and influence peddling, or insider trading. He was identified as one of the main offenders in the Sensex's 176-point decline, which led to the 2001 Budget's failure. He fraudulently rigs the values of hand-selected equities known as K-10 stocks by securing loans from financial institutions. Additionally, he was found guilty of the Cantina mutual fund scandal involving more than Rs 47 crore of fraud. The Serious Frauds Investigation Office (SFIO) put the value of Ketan Parekh's fraud at around 40,000 crores.

We know this from the various media reports, but is this the only truth? Let's find out the real story behind the man and the scam.

Who is Ketan Parekh?



In 1963, Ketan was born into a prosperous middle-class family of stockbrokers and CPAs. He was first introduced to the volatile stock market by his father, Vinaychandra N. After becoming a chartered accountant, he began his work with Narbheram Karakchand Securities, a reputable institutional brokerage firm. He has two daughters together with his wife, Mamta Parekh.

Ketan Parekh is a protégé of Harshad Mehta, who was famous for his life trajectory. However, if reports are to be believed, Mr. Parekh was nothing like Mr. Mehtain in terms of behavior. He was a quiet, unassuming man who appeared to be an everyday person on the street. In actuality, though, his colleagues and rivals perceive him as being extraordinarily cunning and brutal.

Why did people believe in him?



The Pied Piper of Dalal Street is the finest way to characterize Ketan Parekh. Marketmen followed his every move because everything he touched turned to gold. He was more popularly known as the Pentafour Bull. He kept a quiet profile, save for when he hosted a party to celebrate that was frequented by politicians, business leaders, and celebrities. By starting his trading network, Parekh, a chartered accountant by profession, benefited from his family's background as a broker. The Indian stock market sprung between 1999 and 2000 as the technological bubble engulfed the world. The Puppet Master of Dalal Street is the finest way to define Ketan Parekh. This instilled in the people hope for better monetary growth, and they started to believe in his market decisions immensely.

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