STOCK MARKET SCAMS IN INDIA

1) Harshad Mehta

• Estimated Size : Rs 4,000 crore• Mode of Operation : Used money from banks

to make personal gains via investment in shares

• Discovered in : 1992

Harshad and his associates initiated a securities scam by diverting funds of about Rs 5,000 crore from the banks to stockbrokers between April 1991 to May 1992. After the scam was exposed, the stock markets crashed and Mehta was arrested and banned from trading in the stock markets.

2) Ramalinga Raju

• Estimated Size : Rs 14,162 crore• Mode of Operation : The top management of

the software company cooked up accounts to show inflated sales, profits and margins from 2003 to 2008.

• Discovered in : 2009

Ramalingam Raju along with 2 other cooked up accounts to show increased sales, profits and margins from 2003 to 2008. On April 9, 2015, B. Ramalinga Raju, along with 9 others were pronounced guilty in the Satyam Scam.

3) Subrata roy

• Sahara Housing bonds• Estimated Size: Rs 24,029 crore• Mode of Operation: Bonds issued to 29.6

million investors without following Sebi regulations and investor protection measures mentioned therein

• Discovered in: 2010

Subrata Roy in the name Sahara Housing Bonds, which were issued to many investors without following SEBI

regulations and any investor protection measures mentioned therein. The case is still on and one has to

wait for the outcome.