Top Business man harshad-mehta-bull-run in 2023

Harshad-mehta-bull-run There have been many booms and falls in the history of the Indian stock market, but none as notable or dramatic as the Harshad Mehta bull run in the early 1990s. During that time, Dalal Street had grown accustomed to hearing the name Harshad Mehta, a stockbroker based in Bombay, as he had managed a significant rise in share prices that had made him personally and his clients very wealthy.


Early in the 1990s, Harshad Mehta, sometimes known as the “Big Bull,” rose to prominence for his clever trading methods and stock market manipulation skills. His ascent to fame happened at the same time that the Indian economy was liberalised, as possibilities and financial markets become more accessible.

harshad-mehta-bull-run strategy involves taking advantage of banking system flaws, particularly ready-forward (RF) deals. He raised money from banks through these arrangements, pumped it into the share market, and artificially inflated stock prices. His actions sparked a bull run of epic proportions, sending the stock market surging.

Who is harshad-mehta? harshad-mehta-bull-run

Harshad Mehta was born on July 29, 1954, into a Gujarati Jain family in Paneli Moti, Rajkot district. His father ran a small textile business in Borivali, where he spent his early years. After earning his B.Com from Lala Lajpatrai College in Bombay in 1976, he spent the following eight years at various odd jobs, such as selling hosiery, cement, and sorting diamonds.

harshad-mehta-bull-run In the Mumbai division of New India Assurance Corporation Limited (NIACL), he began his career as a salesperson.

Bull run Market ? harshad-mehta-bull-run

harshad-mehta-bull-run To qualify as a bull market, growth in trade volume and purchases of at least 20% must be noted by several stock exchanges.

At this time, investors have high hopes for the stock market’s performance and are eager to invest their funds in this area. An increase in cash flow into this industry due to rising consumer confidence enables businesses to grow annual turnover, which generates bigger profits that are distributed to shareholders.

Harshad mehta Getting started in the stock market:

In the late 1970s, Harshad Mehta started working as a stockbroker after finishing his studies. His early years in the stock market were difficult, but he persisted and gradually accumulated expertise and understanding of how the financial system functions.Harshad-mehta-bull-run

How Harshad Mehta Grew: harshad-mehta-bull-run

During the bull run, harshad-mehta-bull-run, also known as the “Big Bull,” became well-known. He rose to prominence in the financial world as a symbol of money and success thanks to his endearing nature and audacious trading strategies. Mehta’s strategy includes taking advantage of weaknesses in the banking system, in particular through the use of “circular trading” and the manipulation of interbank transactions.

The Harshad Mehta Bull Run:

This event started in 1992 and ran till the beginning of 1993. The stock market went through an unheard-of rising trend at this time, and the value of some stocks skyrocketed. Mehta’s impact was so great that just his advice might affect markets.

The increase in the value of the shares of ACC (Associated Cement Companies) from 200 to 9,000 in a short period of time is one of the most remarkable examples of the bull run. harshad-mehta-bull-run Numerous investors were drawn to such enormous gains, especially tiny individual investors who were seduced by the prospect of rapid wealth.

Frenzy among investors and speculation

An unusual amount of investor mania and speculation resulted from the bull run. People from all social classes, including those in the middle class, rushed to the market to profit from the soaring equities.

harshad-mehta-bull-run The allure of easy money became too great to resist, and the stock market started to dominate conversations at every social event.

exposing the fraud

The joy that followed Harshad Mehta’s achievement was fleeting. In 1992, journalist Sucheta Dalal revealed Mehta’s use of unlawful tactics and financial irregularities.

harshad-mehta-bull-run It was discovered that he had planned a massive securities fraud that involved manipulating stock prices, creating false bank receipts, and carrying out unauthorised transactions.

Legal Conflict and Its Effects

The stock market had a major drop as a result of the scam’s disclosure. Charges of several offences, such as bribery, forgery, and cheating were brought against Harshad Mehta and several other parties involved. Mehta’s empire was destroyed by the scandal and the protracted court battle that followed.


Harshad Mehta’s part in the story

As previously indicated, the RF agreements were mediated by Harshad Mehta. He was successful in getting the banks to write the checks in his name. The funds in his account would subsequently be transferred to the stock markets by him. The swindle was subsequently advanced to new heights by Harshad Mehta, who exploited the flawed system. harshad-mehta-bull-run

There would be only 2 banks engaged in a typical RF deal. A bank would be robbed of its securities in exchange for money. When a bank requested its security or payback, Harshad Mehta would enlist the help of a third bank. Eventually, a fourth bank will be added, and so on. rather than merely two banks

Effects of the Harshad Mehta Scam’s Publicity harshad-mehta-bull-run

–Implications for the Stock Market

The stock market in India had already lost one trillion rupees less than two months after the scandal was made public. A committee was formed by the RBI to look into the situation. The Janakiraman Committee was the name of the group. The Janakiraman Board Report estimates that the scam cost 4025 crores of rupees.

–Impact on the Political Climate

Manmohan Singh, the then-finance minister, as well as S. Venkitaramanan, the governor of the RBI, were both called for to resign by the opposition. Singh even offered to resign, but P. V. Narasimha Rao, the prime minister, rejected this.

–Effect on the Life of Harshad Mehta

More than 600 criminal action cases and 72 criminal offences were brought against Harshad Mehta. Mehta was granted bail and released from detention after three months in custody.

harshad-mehta-bull-run   However, the drama never abated but only got worse. Harshad Mehta asserted in a news conference that he had paid Rs 1 crore in bribes to P.V. Narasimha Rao, the government’s then-prime minister, to guarantee his release.


The harshad-mehta-bull-run concludes that Harshad Mehta’s name will always be linked to one of the biggest financial scams in Indian history.

His actions not only had a significant impact on the market for shares, but they also made changes necessary and set the stage for a more open and regulated financial sector. The Indian stock market is still being shaped by the lessons obtained from the Harshad Mehta trading scandal, making it a safer and more dependable place to invest.

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