This document discusses the 1992 securities scam perpetrated by Harshad Mehta in India. It provides an overview of how Mehta used his brokerage firms Grow More Research and Asset Management Co. and fake bank receipts to illegally divert funds from banks to inflate stock prices. The scam had widespread impacts, resulting in losses of Rs. 4,000 crores for banks, the suicide of a bank chairman, and calls to slow economic liberalization efforts in India at the time. Actions taken in response included removing bogus receipts as an instrument and investigating potential bribery of then-Prime Minister Narsimha Rao.

1. Security
Scam
By: MANISH MAHAJAN
20-MBA13

2. cONteNtS
 Introduction
 Security scam
 Modus Operandi
 Impacts
 Actions taken
 Conclusion

3. iNtrOductiON
 Gujarti Family
 Big dreams
 Sub-broker
for
stock brokers J.L.
Shah
and
Nandalal Sheth

4. The big bull
 Grow More Research
and
Management
Ltd.
Asset
Co.

5. scam

6. scam exposed
 Sucheta
Dalal
“In
1992, when I broke the
story about the Rs 600
crores that he had
swiped from the State
Bank of India, it was
his visits to the bank’s
headquarters in a flashy
Toyota Lexus that was
the tip-off.”

7. Modus opernadi
Issue fake
BR
Bank of
Karad and
Metorpolitan
Co-operative
Bank
Broker
Lender
bank
Harshad
Mehta
Funds

8. iMpacts

9. iMpact
 Banks had to bear Rs 4,000 crores loss.
 The chairman of the Vijaya bank committed
suicide .
 Stay on Liberalisation.
 BR was removed by RBI.
 Bribery case on Narsimha Rao.

10. Mehta after scaM