Ketan Parekh: Net Worth, Scam, Spouse, Harshad Mehta

In the long history of stock marketing in India, one scam that shook SEBI and other investors was the Ketan Parekh Scam. He had executed the scam with so much planning and thought that he made multiple folds of money through the stocks he manipulated. For many years, investors thought of Ketan Parekh as ‘Midas’ who would create profits for everything he touched. But within 2 years of his presence in the stock market, he deceived so many investors and banks that even today, his work and planning is a case study in universities and among upcoming investors. 

Ketan Parekh

Name Ketan Parekh 
Age  59 years
Ketan Parekh Net Worth > 8.7 Crore
Occupation  Chartered Accountant and Stock Trader
Known For  Stock Market Crash Scam of 2001
Accused For  Insider Trading, Pump and Dump Trading, Circular Trading, Loans Defaulting 
Ketan Parekh Spouse  Mamta Parekh
Children 2

He was infamously known as the Bombay Bull in the last decade of the previous century. Ketan Parekh was a mentee of Harshad Mehta, famous for pulling off the 1992 Securities Scam. By profession, Ketan Parekh was a Chartered Accountant and he started working in the 1980s where he ran his family business NH Securities. It was a stockbroking firm that was established by his father. Through his work experience here, he managed to understand all the tricks and stock investing advice and also how the minds of investors worked in this process. 

At his peak, Ketan Parekh was able to manipulate stock prices to such an extent that he acquired the trust of other investors. He had many ties inside the Bollywood community as well as in political circles as a result of his financial success. He formed the KPV Venture alongside Kerry Packer, an Australian multi-millionaire entrepreneur, with a $250 million fund cap to invest in fresh and interesting enterprises.

Ketan Parekh Scam 

Ketan was clearly interested in the Information, Communication, and Entertainment Sector based on his investment strategy. During his peak years, from 1990 to 2000, the dot-com boom began, bringing a large amount of money into these industries. Given his accurate predictions and sharp market knowledge, many of the top businessmen and companies during this time period gave money to Ketan to manage.

Ketan began trading on the Kolkata Stock Exchange since it lacked the same strict rules and regulations as the BSE and NSE. He also worked with a lot of brokers and paid them commissions in exchange for their assistance with information and deals. Having so much cash on hand, he would buy stock in minor, lesser-known companies, causing their stock values to skyrocket. Suddenly, these businesses would be widely publicized. He would sell when the price reached a certain level and earn handsomely.

He also had his own methods for obtaining funds from banks and manipulating stock prices as a result. One well-known example is when he bought Madhavpura Mercantile Commercial Bank shares in order to gain the bank’s trust before approaching them for a loan in the Pay Order format.

Pay Orders are similar to checks in that they are issued by the bank after the customer pays a small advance fee. When he was successful in manipulating this bank’s stock prices, he approached other banks and offered to settle the order with them in exchange for more loans. His total loan amount was more than INR 750 million.

During the same time, he formed the K-10 portfolio, which consisted of the top companies he had chosen. His main interest at the time was in low-profile enterprises with modest market value. He would put a lot of money into these firms and then profit from them, but the big con was when he was accused of having insider information about the company and manipulating the prices as a result. He then took advantage of the price increase to instill trust in the investor’s mind.

Ketan Parekh – Unearthing of the Scam 

When the market crashed dramatically the day after the budget was announced in 2001, the RBI and SEBI launched their first investigations into the scam. Ketan was accused of insider trading, pump and dump trading, and circular trading at the time. The investigation lasted many years, and even companies that worked with him during the transaction were finally barred from doing business.

Ketan Parekh and Harshad Mehta 

Harshad Mehta, who was at the height of his career at the time, met Ketan Parekh in the 1990s. Harshad Mehta founded GrowMore Ventures, which Ketan eventually joined. This firm was one of the primary suspects in the Securities Scam of 1992. According to unconfirmed media sources, Harshad Mehta’s methods and recommendations, as well as his connections, helped Ketan Parekh pull off such a massive swindle.

Ketan Parekh Biography

Many management schools still use his role in the stock market crash and manipulation as a case study. His con had expanded to other nations, and reports appeared after 2010 claiming that he had lent huge international firms billions of dollars in outstanding loans. His bluffing and trickery were eventually discovered, and the large loan he had accumulated put him in financial difficulties. He was sentenced to three years in prison in 2018, however the Bombay High Court later postponed the sentence and granted him bail.

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