PRESENTED BY:

BLUE QCEAN FINANCING

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INTRODUCTION From Gujrati jain family, childhood was spent in

Mumbai

First job: Dispatch clerk in the New India Assurance Company

During his work , started investing in stock market with his brother Ashwin Mehta

Managed to get BSE broker’s card

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THE RAG TO RICHES STORY

Started his career with New India Assurance co.

Quit his job in 1981 to become a sub-broker. Went bankrupt in 1982 & recovered soon to become more stronger.

Went on to become the one most successful broker –thereby earning the nick name of “THE BIG BULL”

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Became a Prominent Name

Started buying shares heavily since early 1990

The shares which attracted his attention were:

Associated Cement Co. (ACC)

Apollo Tyres

Reliance

Tata Iron and Steel Co. ( TISCO )

BPL

Sterlite

Videocon

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ABOUT THE SCAM

Diversion of funds

Use of Ready Forward(RF) to maintain SLR(statutory liquidity ratio) creative Accounting Intra-day Trading

The Ready Forward is in essence a secured short-term (typically 15-day) loan from one bank to another.

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Growing Stage Of ‘BIG BULL’ Exploiting the loop hole in the Banking system

HARSHAD MEHTA’s trademark style:

a) He used to study Fundamentals

b) Buy in big quantity

c) Then make it public

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AT MATURITY STAGE Here, the Boss of Growmore Research and Asset

management

He lived almost like celebrity in a 15000 sq. feet house

Also had a crush for flashy luxurious cars

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DECLINING STAGE In 1992, first article came out against THE BIG BULL

and the story was about 600+ crores rupees scam from SBI…..

He used “Ready Forward deal” for this scam

As per Indian Law, it was not allowed to give such RF loan to any individual person by bank

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CONTD.. The bear cartel has exposed the truth behind the

constant rise of this BIG BULL

Headline of Indian newspaper regarding 4000 crores rupee scam in Indian Stock Market

Bear cartel was behind HARSHAD MEHTA now they filed as many cases as they can against Harshad Mehta

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CONSEQUENCES BR value became ZERO

Crash of Financial Institution

Many suicidal notes were found near dead body of Indian Stock Traders

In 4000 crores scam, many Financial firms, many political parties and many big names were involved, but surprisingly only one man was trapped

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STEPS TAKEN BY SEBI SEBI restricted Harshad Mehta from dealing in securities

Investigation completed in two phases :

FIRST PHASE: SEBI suspended the 17 brokers and sub-brokers for 1 to 3 years. They were responsible for manipulations in the scripts

SECOND PHASE: The president of BSE told to resign from his office. And it started hearing in quasi-judicial manner., after inspecting the documents and hearing of witnesses

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END OF THE BIG BULL LATE 2011, place THANA jail, the jail superintended

came to know about end of the BULL era with news of HARSHAD MEHTA Death

Reason was HEART ATTACK, but it was shocking to know that before he died he was proved innocent in all cases against him

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Moral Of The Story……

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