Known as India’s second “Big Bull,” Ketan Parekh gained notoriety in the late 1990s for his aggressive stock market strategies, which ultimately contributed to his demise. Parekh, who was trained by the notorious Harshad Mehta, filled the void left by Mehta’s financial scandal by employing market manipulation strategies that greatly benefited him and the promoters he collaborated with.
Market Manipulation Drives an Uptick
Ketan Parekh, who was renowned for converting failing equities into high flyers, rose to prominence as one of Dalal Street’s most prominent brokers in the late 1990s. But his skills extended beyond stock selection; he was also skilled at manipulating market behavior and inflating stock values through illicit means. Parekh collaborated with business promoters for a number of years, manipulating shares to increase profits, which eventually contributed to his success.
The Decline of “Big Bull”
Ketan Parekh’s empire fell apart in 2001. Market regulators and banking officials looked into a payment issue that was brought on by a beer scam in Kolkata. Due to his involvement in illicit market practices including share rigging and circular trading, Parekh, popularly known as “KP,” was exposed as a rogue trader and prohibited from trading in the stock market. In order to profit himself and the company’s promoters, he frequently inflated stock prices before selling depreciated shares to financial institutions like as LIC and UTI.
Legal Issues and the Prohibition
Parekh was sentenced to one year in prison for his role in market manipulation, which caused investors to suffer enormous financial losses. His broker business, NH Securities, became well-known, and many continued to operate covertly with him in the shadows even after the Securities and Exchange Board of India (SEBI) banned it. Though there were persistent allegations regarding Parekh’s ongoing influence in the market, he was able to keep a low profile and distance himself from the public glare despite his legal issues.
A Calm Life Following the Prohibition
Parekh withdrew from the spotlight and led a more peaceful and solitary life after serving his time and being banned in 2001. He was nevertheless associated with a number of well-known people and businesses. His name still has value on the stock market today, and people are still curious about him. Despite being prohibited from trading, Parekh’s influence is said to still permeate the market’s shadows, with some people thinking he still uses proxies to operate in secret.
A villain in the stock market
Financial scandals, deception, and manipulation characterize Ketan Parekh’s legacy. Parekh serves as a warning to investors as the mastermind behind some of the most well-known stock market scams in India. His acts are a sobering reminder of how unethical behavior and unbridled power can hurt regular investors as well as the financial markets.
The Invisible Impact of Ketan Parekh
Despite being prohibited from participating in stock market operations, Ketan Parekh’s influence endures. People in the market still call him a “demigod” for his prowess in stock manipulation, and his influence endures in the shape of covert operations. Parekh is a symbol of the negative aspects of the Indian stock market, which many people still want to stay away from.
