By Ketan Parekh was reportedly the person behind the 2001 stock market scam. Here, he is a Chartered Accountant. Also, started his professional career. By handing over his family brokerage firm named NH Securities. Then, he followed his mentor Harshad Mehta and joined him. Moreover, you might want to know more about this personality in depth. In this article, we’ll explore all the relevant and sufficient information about him.
Ketan Parekh Biography
Ketan Parekh is reportedly a well-known chartered accountant. Evidently, he is mainly known because of the 2001 stock market scam. However, before the scam, he was known as One Man Army. Or Pentafour Bill of the Indian Stock Market. Moreover, he used to guide people on making investments in stocks. People also used to call him and follow his guidance blindly. During the scam, he further generated 100%. And will return some of the stocks manipulated by him. Moreover, he learned the tips and tricks of the stock market. Especially from his mentor Harshad Mehta. Notably, he was also a promoter in a company of Harshad Mehta. Along with Ashwin Mehta.
Ketan Parekh – Wiki/Profile
| Attribute | Details |
| Name | Ketan Parekh |
| Profession | Stock broker/ Businessman |
| Age | 52 (as of 2021) |
| Date of Birth | 1969 |
| Zodiac Sign | Unknown |
| Birthplace | Unknown |
| Height | Unknown |
| Weight | Unknown |
| Net Worth | ₹2 crore |
| N/A |
Ketan Parekh Scam
Moreover, the records of SFIO or Serious Fraud Investigation Officer. Here, he claims that the scam amount was worth around ₹40 crores. Furthermore, Ketan was friends and business partner with famous personality Mogul Kerry Packer. So, they can start a venture capital firm.
Early Life and Family
Evidently, Ketan’s age is 60 years. Moreover, he was born in 1963 in an upper middle-class family. Here, he consisted of Chartered Accountants and stockbrokers. Furthermore, he observed his father dealing in the stock market. Then, he was charmed by the world of stock market. After completing CA, he joined his family business of stock brokerage. Then, joined Harshad Mehta’s company GrowMore. Additionally, Ketan’s wife is Mamta Parekh Mohan. Together, they have two daughters.
Role of Ketan in Scam 1992
Notably, Ketan was also involved in a scam in 1992. But, his role was not mentioned in the web series. Additionally, Ketan was influenced by the rise of Harshad. Therefore, he joined his company GrowMore in the early 90s. Furthermore, when the 1992 scam was uncovered, Ketan managed to escape. However, his role in the scam came to the forefront in 2001. Especially when his own scam was uncovered. Evidently, he was convicted in 2008. In addition, he was also sentenced to a year of imprisonment. Especially for his role in the 1992 scam. Ketan was reportedly found guilty of phoning public funds worth ₹48 crore. Especially from a branch of Canara Bank during the scam.
How does he pump and dump K-10 stocks?
Notably, Ketan not only used the same pump and dumb scheme. So, they can earn a huge profit. However, he also altered the strategy to suit his method. Evidently, he decided to target institutional investors who invest heavily. Especially in stock markets. Also, they are easier to control in comparison to retail investors. Moreover, he was bullish on the Information, Communication and Entertainment sector. Particularly, during the Dot-Com boom. Furthermore, he invested in the stocks of this sector. Later, his major predictions were correct because the prices of stocks skyrocketed. Moreover, he was able to convince the institutional investors with accurate predictions. He further manipulated some of the stocks and even generated 200% annual returns. Such stocks were commonly known as K-10 stocks. Moreover, it includes HFCL, GTL, Pentamedia Graphics, and Silverline technologies. Along with Ranbaxy, Zee telefilms, Aftek Infosys and more.
Ketan Parekh: How did he execute the scam?
Evidently, he raised the funds to pump up the stocks. Ketan was reportedly on the board of Global Trust Bank and MMCB. Furthermore, he used to clot in the banks. So, they can receive huge loans against his shares. According to the RBI, banks could give only up to ₹15 crores. As loans to a stock broker. But, Ketan bribed officials of their bank. So, they can receive loans of around ₹800 crores from MMCB. Also, ₹100 crores from GTB. In addition, Ketan also defrauded MMCB. Then, issued a payment of worth ₹137 crore to an office company. Despite this, he also took massive amounts of money from promoters house companies. So, they can shoot up prices of the stock.
Moreover, it would help increase the net worth of traders. Especially whose money was invested in the company. Not only this, it will also help Ketan to book profits. Especially after squaring his position.
Ketan Parekh: How was the scam exposed?
Moreover, after the budget of 2001, the Sensex crashed by 176 points. Furthermore, this propelled the NDA government. So, they can conduct an investigation into the market crash. Ketan was reportedly the prominent name in the stock market. Then, transactions came under scrutiny. After investigation, the RBI later found Ketan’s orders to be suspicious. During that time, a payment crisis also occurred in the Calcutta Stock exchange. Especially when the beer started dumping K -10 stocks. Hence, all of this result resulted in Sensex tumbling 146 points.
Trivia
- Ketan plotted the 2001 scam as the main planner.
- He entered the stock market influenced by his father.
- He was involved in the 1992 scam with Harshad Mehta.
- Ketan manipulated stocks and generated 200% profits from them.
- He was arrested on 31st March 2001 for fraud.
- The fraud involved Rs.137 crores from the Bank of India.