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8 scams that rattled the Indian stock markets

July 30, 2014 13:11 IST

8 scams that rattled the Indian stock markets

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Investors have not received their hard-earned money back in several high-profile cases.

Take a look at 8 biggest scams that shocked the stock markets...

Compiled by Mayank Mishra


Image: Bombay Stock Exchange.
Photographs: Sahil Salvi

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Harshad Mehta scam

Estimated Size: Rs 4,000 crore

Central figure: Harshad Mehta

Discovered: In 1992

Modus Operandi: Used money from banks to make personal gains via investment in shares

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Image: Harshad Mehta
Photographs: Reuters

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CRB Scam

Estimated Size: Rs 1,200 crore

Central Figure: CR Bhansali

Discovered: 1996

Modus Operandi: Raised public money through FDs, MFs and debentures via nonexistent firms and invested them in stocks for personal gains

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Image: CR Bhansali
Photographs: Reuters

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Ketan Parekh Scam

Estimated Size: Rs 800 crore

Central Figure: Ketan Parekh

Discovered: 2001

Modus Operandi: Circular trading in selected stocks via borrowed money from banks to manipulate share prices

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Image: Ketan Parekh
Photographs: Reuters

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Satyam Scam

Estimated Size: Rs 14,162 crore

Central Figure: Ramalinga Raju

Discovered: 2009

Modus Operandi: The top management of the software company cooked up accounts to show inflated sales, profits and margins from 2003 to 2008.

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Image: Ramalinga Raju
Photographs: Reuters

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Sahara Housing Bonds

Estimated Size: Rs 24,029 crore

Central Figure: Subrata Roy

Discovered: 2010

Modus Operandi: Bonds issued to 29.6 million investors without following Sebi regulations and investor protection measures mentioned therein

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Image: Sahara Chief Subrata Roy
Photographs: Reuters

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Speak Asia

Estimated Size: Rs 2,200 crore

Central Figure: Ram Sumiran Pal

Discovered: 2012

Modus Operandi: Investors were asked to subscribe to an e-magazine for a certain sum, after which they became eligible to answer surveys and got paid for each survey.

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Photographs: Reuters

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Saradha Scam

Estimated Size: Rs 10,000 crore

Central Figure: Sudipta Sen

Discovered: 2013

Modus Operandi: Ran multiple investment schemes collecting money from nearly 1.4 million investors in West Bengal and Odisha

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Image: Police officers escort Chit-fund company Saradha Group's Chairman Sudipta Sen (R) to a police van outside the airport on his arrival in Kolkata.
Photographs: Reuters

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NSEL Scam

Estimated Size: Rs 5,600 crore

Central Figure: Jignesh Shah

Discovered: 2013

Modus Operandi: Investors were wooed by offering fixed returns on paired contracts with agri and industrial commodities as underlying. the stocks were missing and money was allegedly siphoned by so-called borrowers


Image: Jignesh Shah
Photographs: Reuters

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