The Harshad Mehta scam was a financial scandal that rocked the Indian stock market in 1992. It was one of the biggest financial scams in India's history, involving hundreds of billions of rupees. The scam was orchestrated by Harshad Mehta, a stockbroker who manipulated the stock market to artificially inflate prices of certain stocks.
The scam began in April 1992 when Mehta and his associates began buying large amounts of shares in certain companies. They used a technique known as "ready forward" transactions, which allowed them to buy shares without actually paying for them. This allowed them to artificially inflate the prices of the stocks they were buying.
Mehta and his associates then sold these stocks at a huge profit. They also used the money they made to buy more shares, further inflating the prices. This created a "ripple effect" in the stock market, as other investors began buying the same stocks, believing that they were a good investment.
The scam was eventually uncovered by the Securities and Exchange Board of India (SEBI), which launched an investigation into Mehta's activities. The investigation revealed that Mehta had manipulated the stock market and had made illegal
