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A Presentation
On
Std :: MAM(Sem-5)
Sub. :: Business Ethics
En :: 137600585012
Prepared by :: krishna v. poshiya
Submitted to :: Miss Nisha Raval
(Ass.professor in Smt.Shantaben Haribhai Gajera MBA Mahila college Amreli)
ETHICAL ISSUES IN FINANCIAL MANAGEMENT
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INTRODUCTION
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DEFINITION OF CREATIVE ACCOUNTING
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ETHICAL ISSUES IN FINANCIAL MANAGEMENT
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Harshad M Mehta was an Indian stockbroker, well known for his wealth and for having been charged with numerous financial crimes that took place in 1992.
Of the 27 criminal charges brought against him, he was only convicted of one, before his death at age 47 in 2001.
Mehta was convicted by the Bombay High Court and Supreme Court of India for his part in a financial scandal valued at 49.99 billion (US$780 million) which took place on the Bombay Stock Exchange (BSE).
FOR EXAMPLE HARSHAD MEHTA SCAM
6 In the early eighties he quit his job and sought a job with stock
broker P. Ambalal affiliated to Bombay Stock Exchange.
He became a jobber on BSE for stock broker P.D. Shukla after that.
In 1981 he became a sub-broker for stock brokers J.L. Shah and Nandalal Sheth.
He took advantages of loopholes in banking system.
He triggered SENSEX in 1992 & made the scam by diverting funds of Rs.4,000 crore.
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On April 23, 1992, journalist Sucheta Dalal exposed Mehta's scam.
EXPOSURE OF 1992 SECURITIES SCAM
8 IMPACT OF SCAM ON FINANCIAL
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Mehta had by then swindled the banks of a staggering Rs 4,000 crore.
He was later charged with 72 criminal offenses, and more than 600 civil action suits were filed against him.
He was arrested and banished from the stock market.
Mehta and his brothers were arrested by the CBI on November 9, 1992 for allegedly misappropriating more than 27 lakh shares of about 90 companies.
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A few years later, Mehta made a brief comeback as a stock market expert and started providing investment tips on his website and in a weekly newspaper column.
He worked with the owners of a few companies and recommended the shares of those companies only. When he died in 2002, Mehta had been convicted in only one of the 27 cases filed against him.
What attracted the taxman’s attention was Mehta's advance tax payment of Rs 28-crore for the financial year 1991-92. Another eye-catcher was his extravagant lifestyle.
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CONCLUSION
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