2007-02-07 02:20:35 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
In India, April 1992, press reports indicated that there was a shortfall in the Government Securities held by the State Bank of India.
In almost a month, investigations uncovered the tip of an iceberg, later called the securities scam, involving misappropriation of funds to the tune of over Rs. 3500 crores. The scam engulfed top executives of large nationalized banks, foreign banks and financial institutions, brokers, bureaucrats and politicians.
The functioning of the money market and the stock market was thrown in disarray. The tainted shares were worthless as they could not be sold. This created a panic among investors and brokers and led to a prolonged closure of the stock exchanges along with a precipitous drop in the price of shares.
In less than 2 months following the discovery of the scam, the stock prices dropped by over 40%, wiping out market value to the tune of Rs. 100,000 crores.
The scam was in essence a diversion of funds from the banking system (in particular the inter-bank market in government securities) to brokers for financing their operations in
the stock market.
2007-02-07 06:22:14 · answer #1 · answered by BK 1 · 2⤊ 0⤋
http://en.wikipedia.org/wiki/Harshad_Mehta
2007-02-09 10:01:05 · answer #2 · answered by Oye chak de phatte!! 5 · 0⤊ 0⤋
ask sucheta dalal
& now of no use all loophole r pluged
2007-02-08 04:48:31 · answer #3 · answered by dinu_pawar 5 · 0⤊ 2⤋