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Scam 1992 web series review। story of harshad mehta scam।

           The whole article is about the SonyLiv 's web series," scam 1992 the harshad mehta story ". The story is based on the book," The Scam " written by sucheta dalal and debashis basu. In this webseries the character of harshad mehta is played by pratik gandhi. His acting is awesome on the whole web series. Everything is perfect from his dialogue delivery to expression. Shreya dhanwanthary plays the role of sucheta dalal. She also acts great. In the web series many complex terms are used such as ready forward deal(RF deal), bank recipt(BR), insider trading etc. Let's understand these complex terms so that you can easily understand the web series. 

Scam 1992 web series review। story of harshad mehta scam।

             The financial condition of harshad mehta's family was not good from the beginning. For this he did small jobs. But his dream was to be rich within short time. His small jobs didn't help him to become rich. So he always found an opportunity that can made him rich within short time. He also found some acquaintances people who gained huge from stock market. Seeing their success harshad mehta decided to enter in the stock market. At first he entered in stock market doing jobs under some broker. He understood the market rapidly. Within some year he became stock broker


             Harshad watched some people who earned huge profit by doing insider trading in stock market. They also became rich quickly by  it. Watching it harshad also started the insider trading in stock narket. Any information that can effect on company's share price is called insider information. Generally the system is that any information that can effect on company's share price must be provided first to the stock exchange by the stock exchange listed companies and then stock exchange will do the information public. If any company gets a big deal or contracts with another company that can give the company profit and can effect on company's share price then the information must be shared first with stock exchange and then stick exchange will send the information to the public. Many times all these informations becomes leak before coming to stock exchange. 


         For example if a company do a contract with another big company and for this the company will earn huge profit then the information will be sent first to the stock exchange. But many times before reaching to stock exchange the information is become leak. And some people use this insider information in stock market taking positions. Such as when the insider information that can give the company huge profit is got by the people like harshad mehta they buy the company's shares immediately. And later when the information is done public and the share price starts to increase because of the high buying demand then the people like harshad mehta starts to exit from the stock booking profit. And thus harshad mehta earned huge. You can check Harshad Mehta Scam from here.


           But his aim was to earn profit more. Harshad mehta watched that few people manipulated the stock's price. It means they either increase the share price or decrease the share price. The people who manipulate the share price are called operator. Seeing them harshad mehta started to manipulate the stock's price and became an operator. In the stock operating process generally pump and dump scheme is used. In pump and dump scheme the people like harshad mehta invest in one or two particular stock and then tell the public to invest on the stock because its share price will increase. And when other people start to invest on the stock believing the operator the share price of the stock will automatically increase. And thus harshad earned huge profit.

Harshad mehta scam explanation

            Harshad mehta would give many companies increasing their stock's share price using his company, Grow More Research. And in return of manipulation he used to take commission from the company. To manipulate stock's price he first utilized the money of grow more research 's investors. And when huge money was needed to manipulate the share price he thought about the banks. Because banks and goverment companies have always huge money. Harshad knew that he could earn huge utilizing the money. And he finally found the method to utilise the bank's money for manipulating the stock's share price.  


              Sometimes to cover the expenses government needs money. For this government raises fund issuing government bonds. Generally government borrowed money from institutional investors and it is compulsory for the banks to invest their some portion in goverment securities. Every bank have many government bonds. And when any bank needs short time loan they took the loan giving the bonds to another bank. And it is called RF deal or Ready Forward deal. In this process two banks are needed. One bank borrows the money and other bank gives the money. And here two things are exchanged. One is br( bank recipt ) and other is money. For example we take hdfc bank and indian bank. Suppose indian bank needs short time loan by rf deal and hdfc bank wants to give the loan by rf deal then hdfc bank will transfer the loan amount to indian bank and in return of indian bank will give bank recipt to hdfc bank. Getting bank recipt means they get the loan amount and they give the government securities to hdfc bank. 


             To earn interest many banks give loan by rf deals. And the banks which needs short time loan take it by rf deals. For example if any company wanted to get short time loan by rf deals then it was a difficult task to find the bank that would give the loan. For this brokers were needed. Brokers worked as a mediator between banks. Generally ready forward deal would happen in large scale. In these cases there was a good relation between banks and brokers. Some brokers told loan giving bank to transfer the money in their account and they would transfer the money to the loan taking bank and then they would send the bank recipt to the loan giving bank. And the banks trabsferred the money to the broker's account to do quick deal. And harshad mehta took the advantage of it. 


               The money by the bank that wanted to give to another bank by rf deal was transferred to harshad's account. Harshad used the money in stock market to manipulate the stock price. And when bank wanted the bank recipt to harshad mehta then he started to give fake bank recipt. After using the money for some days he returned the fund to the bank. And this system was continuing well till the market was going up and he was earning profit. When the market was going down and the share price of harshad's invested company started to decrease then harshad faced difficulties to repay the bank's fund. When he faced losses he started to approach other bank that was ready to give short term loan by rf deals. He repaid the one bank by another bank. But stock market crashed more harshad mehta faced huge loss in stock market. He couldn't repaid the bank's money. And his scam came in light. For this many government banks faced huge loss directly and indirectly the common people faced losses. 


              Manipulating the stock market harshad earned huge money. Once he was the biggest advanced tax payer individual. He bought many luxury cars,bungalow using the money. It is not right that there was no other operator in stock market. There were many operators who earned profit manipulating stock price. But the scale of harshad's scam became large and it easily came to the attention of all. In the whole scam many politicians and other operators were involved. But they were succeed to escaped. Ketan parekh who worked in harshad's company did a great scam after the scam of harshad. It was also disclosed by sucheta dalal. You can check the ketan parekh scam from here. The web series of sonyliv is really good and you should watch this. You can know many things about stock market and finance. All the characters are played great in the scam 1992 the story of harshad mehta. You can check Harshad Mehta Scam from here.


          If you have any query related to scam 1992  please comment below so that the topic can be covered.


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