Almost all people from the 90s are familiar with the name Ketan Parekh. Being associated with India's one of biggest stock market scams, this name shocked the nation overnight. The scam garnered huge attention, and Ketan Parekh became a case study for many people. However, no one knows the reality because that's how this world works. Nobody ever thought that with a huge sum of money, would have run away quickly; then why did he choose to stay here? To understand the complete truth of Ketan Parekh's stock market fraud, firstly, we need to understand the life of Ketan Parekh.
Ketan Parekh — The ITC Bull
The professional journey of Ketan Parekhbegan in the early 1980s by assisting his father and uncles in the family-run business. In 1985 he successfully cleared the challenging CA exam while helping his father and uncles in business. His love for numbers ignited his interest in trading and the stock market.
What is Ketan Parekh Stock Market Fraud?
Ketan Parekh was a firm believer in the ICE industry and had high hopes for the industry. During the booming years, he invested money in the industry, which enabled him to show other investors that his estimates were accurate. Furthermore, he successfully influenced them, and various investment firms, foreign corporations, entrepreneurs, and banks trusted Ketan with their money.
However, the misfortune of Ketan Parekh started when he was accused of participating in insider trading by influencing the stock price of companies who bribed him and then profiting from the price rise to deceive investors. As a result, SEBI determined that Ketan owes around Rs. 12.73 billion to companies. Rs. 8.8 billion to MMCB, and Rs. 2.66 billion to Global Trust Bank, and the year 2006 saw 400 billion rupees.
Ketan was arrested and accused of using overseas business bodies and FII sub-accounts for shifting money offshore. During his trial, he was charged with lying, faking accounts, stealing stock market prices, and mismanaging public money. Ketan was prohibited from investing in the Indian Stock Market, and the Supreme Court sentenced him to imprisonment and ordered him to pay all the money owed to banks. For the majority of people, the story ended here, but the misfortune of Ketan didn't leave him there.
Second Shot
Despite the severe blows to his reputation Ketan never lost trust in the Indian Judicial system and obeyed the orders of the Supreme Court. He worked relentlessly behind bars to pay the huge amount and is still working to recompense the due amount. Unlike other scammers and fugitives, the Ketan would have flown to a foreign land if he wanted. But he chose to face the allegations intrepidly and took corrective measures to compensate for the loss. Ketan has suffered enough for the risks he took during his trading days; it's high time that we should know the complete truth and stop being judgemental for the mistakes Ketan made in the past. Ketan deserves a second shot, and we should give him a much-needed second chance.
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