Professional Documents
Culture Documents
Scam
•Modus Operandi
•Impact of scam
•Conclusion
Economic & Market position
before the scam
▶ Licensing system
▶ Open-Outcry system
▶ No Circuit Breakers
Harshad
Mehta
▶Name: Harshad Shantilal Mehta
▶ Profession: Stockbroker
2)Bank Receipts
Ready Forward
Deal
▶ A secured short-term (typically 15-day) loan from one
bank to another
▶ Payment of cheques
▶ Dispensing of securities
Bank Receipts
▶ In a RF deal securities were not moved back and forth in
actuality
▶ The borrower, i.e. the seller of securities, gave the buyer of the
securities a Bank Receipt
Sucheta Dalal
Issue fake BR
Broker
Borrower bank Lender bank
Harshad Mehta
Funds
Impact Of Scam On Market
Impact on
others
▶ Mehta had by then swindled the banks of a staggering Rs
4,000 crore
▶ Stay on Liberalisation