SCAMS IN FINANCIAL MARKETS

Presented by:-Meghna Tank-58Sandeep Kaur-48Shahbaz Shah-50Ramakrishna-46

INTRODUCTION TO SCAM

MAJOR SCAMS

HARSHAD MEHTA BIG BULL SCAM 4000 crore-Before 2005

STAMP SCAM (Goa)- 30.19 crore-September 2005

SATYAM SCAM- 7 to 14000 crore-Jan 2009

LALIT MODI IPL SCAM- 1200 crore - July 2010

COMMON WEALTH SCAM- 8000 crore- Aug 2010

ENRON SCANDAL-Dec 2001

2G SPECTRUM-2010

IPO BUBBLE-1993

SCAMS TO BE EXPLAINED

HARSAD MEHTA

KETAN PAREKH

ENRON SCANDAL

HARSHAD MEHTA SCAM- 1991Rise in the BSE-1992 4000 crore (rs 40 billion) -banks to stockbrokers between april 1991 to may 1992.Huge sums of money from several banks and millions of investors were conned in the process. Charged with 72 criminal offences. Died in 2002 with many litigations still pending against himMajor culprits – brokers, bankers, financial institutions, bureaucrats, etc.

KETAN PAREKH-1999-2001.

"All my lifetime's savings are gone. I don't know how to feed my family."-

A small investor hit by the Ketan Parekh scam, in April 2001

ProfessionThe K 10 stocks

• Amitabh Bachchan Corporation Limited (ABCL)• Mukta Arts • Tips• Pritish Nandy Communications. • HFCL• Global Tele systems (Global)• Zee Telefilms • Crest Communications • Penta Media Graphics

ENRON SCANDAL- 2001

CONCLUSIONIt is clearly evident that the occurrence and reoccurrence of such security scams and financial scandals as some point in time be attributed to a failure of corporate governance in finance and that of financial regulation.