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Top 5 Scams in History of Indian Market: These five scams were not just crimes, these were warnings, for the vigilance of the market, the awareness of regulators and the understanding of investors. Every time the market shines, these incidents remind that the truth is the biggest value in the race for blind earnings.
Top 5 scams in history of Indian market: The history of the Indian stock market is as exciting, the more scams have been filled with scams. Some scams were so big and shocking that they not only shake the foundation of the market, but also hurt the investor’s trust system deeply. The names behind these scams are still on the tongue of the people- not the hero, but as a warning. Let’s look at the 5 most notorious stock market scams of India, whose effect is still felt.
Harshad Mehta Scam (1992)
When ‘Big Bull’ connected banking to the stock market, the 1992 scam is considered one of the most black events in the Indian stock market. Harshad Mehta, once called ‘Big Bull’, created artificial boom in the stock market by misusing the funds of public sector banks. He scammed about ₹ 4000 crore using bank receipts (BRS) and loophols. As soon as this scam came to light, there was a tremendous decline in the market and the capital of millions of investors drowned. This scam created a new demand for transparency in India’s financial system.
Ketan Parekh Scam (2001)
When Tech Boom became a trap of ‘K-10’ stock, Ketan Parekh, considered a disciple of Harshad Mehta, adopted a new strategy-fake boom in shares of technical and media companies. In ten companies called ‘K-10 Stocks’, they brought the share prices to the sky with artificial trading. A scam of more than ₹ 1000 crores was done from fake funding, co-banking and cross-holdings. When the bubble exploded, the market shake and investors suffered heavy losses again.
Satyam Computer Scam (2009)
When the truth of an IT company turned out to be faster than technology, Satyam Computer Services was considered a trusted IT company, but its chairman Ramalinga Raju himself admitted that he rigged more than ₹ 7000 crores in the balance sheet of the company for years. He confused investors and regulators through fake billing, fictional employees and fake benefits. This scam emerged as a big question on corporate governance in India and many improvements in the functioning of SEBI and MCA.
NSE Co-Location Scam (2015-2018)
In this scam, some high-frequency traders of the National Stock Exchange were given special and unfair advantage of ‘co-location’ facility, due to which they could reach data a few milliseconds earlier than common investors, making them incorrectly making profit. This technical fraud raised questions whether everyone really gets equal opportunities in the market? This case brought the monitoring power of the regulatory system to a new level.
Adani-Hindonburg controversy (2023)
When the global report shook an empire, allegations on the Adani Group by the American firm ‘Hindonberg Research’ were the most talked about case in recent years. The report claimed stock manipulation, excessive evaluation and flow of money through shell companies. After this report, there was a tremendous decline in the shares of the companies of Adani Group and the concern of investors reached the peak. Although the group denied the allegations, the controversy again gave air to the debate of corporate transparency in India.
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