White collar crimes are considered as a serious threat to the economy, These financial crimes are performed by the upper strata of society . People with high educational qualifications had done these anti-social activities. The main motive behind these white collar crimes is to gain huge financial assests with in a short period. These stock market scams has shocked the entire nation and brought devastating losses to the Dalal Street.
Stock market scams which shook the Dalal Street :
1.Harshad Mehta scam : This fraud was threating jolt to the stock markets in the 90’s. The scam was worth of 4,000 crores done by a “Harshad Mehta” a notable stock broker. He manipulated the stocks with fake Bank receipts. He earned huge sums of money from this scam which was exposed in 1992.
This was the biggest stock market crime till 1990’s.
2.CRB Scam :
This scam was done by CR Bansali, A Charted Accountant by profession. He holds degrees in ACS, Ph.D., MIIA (US) and a diploma in Journalism. Bansali’s fraud includes raising public money through FDs, Mutual Funds and debentures.
He established several companies under the umbrella of “CRB consultants”. His empire started from 1.2 crore and raised to 103 crores in a short span of two years. Crb caps has also gone from 2 crore to 430 crores.
Later inn 1996 his scam was exposed and he fleed the country. The Estimated Size of the scam is Rs 1,200 crore
3.Ketan Parekh Scam
His scam was exposed in 2001 where the worth was estimated around 800 crores. Ketan Parekh was a trainee of Mr.Harshad Mehta. His crime includes Circular trading in selected stocks via loans from a various banks including Global Trust Bank and Madhavpura Mercantile Cooperative Bank. He manipulated shares with the borrowed money jsut like his guru Harshad Mehta.
This happened to be the India’s biggest corporate fraud which caused a loss of 14,162 crore. The central figure involved was “Ramalinga Raju” of Satyam Computers. The management had falsified the accounts and showed show inflated sales, profits and margins to hike their share price.
5.Sahara Housing Bonds :
The estimated size of the fraud is Rs 24,029 crore done by “Subrata Roy”. 29.6 million investors has been frauded aganist the SEBI Regulations by issusing Housing Bonds.