Digging deeper into The Ketan Parekh Scam

Known as one of the biggest Stock Market scams, “The Ketan Parekh Scam”, shook the nation overnight, and as they say, this scam garnered so much popularity that Ketan Parekh became a case study for many.

During our research, we discovered many facts related to this scam that many of us are unaware of. Let’s dig deeper into the Ketan Parekh Scam and find out the truth that we don’t know!

What was the Ketan Parekh Scam?

Ketan Parekh was a firm believer in the ICE industry during the dot-com boom years of 1999 and 2000. (Information, Communication, and Entertainment). This enabled him to show many more investors that his estimates were accurate. Furthermore, various investment firms, foreign corporations, banks, and entrepreneurs from publicly traded companies entrusted him with their money while Ketan Parekh commanded the stock market from 1999-2000.

He was seeking low-profile enterprises with low market capitalizations and liquidity. That is how he influenced the pricing of such businesses using the ‘Pump and Dump’ strategy. He was accused of participating in insider trading by purposefully influencing the stock price of certain corporations that would bribe him and then profit from the price rise to deceive investors.

SEBI determined he owed Rs. 12.73 billion to companies, Rs. 8.88 billion to MMCB, and Rs. 2.66 billion to Global Trust Bank in April 2001. 2006 saw 400 billion rupees. He was accused of using Overseas Business Bodies and FII sub-accounts to shift money offshore. The government accused Ketan Parekh that he lied, faking accounts, stealing stock market prices, misusing investors’ judgments, mismanaging public money, and paying business directors to engage in insider trading but the reality is quite different. It’s high time that people learn the real truth behind this scam.

The Untold Truth about the Ketan Parekh Scam

While Ketan is widely known as a convicted scamster and rogue investor, very few people know about the actions he has taken over the last two decades to make amends. With faith in the Indian judicial system, Ketan has been working for years toward doing the right thing. He has never openly revealed his side of the story, leading to many false statements and speculations. But the time has come for the world to see the actual truth and get to know him as a person and an investor.

Ketan was trapped, triggering off a payment crisis on the bourses, and forced to default on his payment obligations to banks. The events that followed are well known: Ketan was arrested and tried in court. He served time in prison and was prohibited from trading in the Indian Stock Exchange for over a decade.

Ketan firmly believes that the risks he took during his trading days were necessary. Nevertheless, he is very aware of the impact of the consequent losses on the financial institutions involved, their customers, and the Indian economy. For this reason, his ultimate aim has been to return the money he had borrowed from the banks which had been lost in 2001.

While many know him as a convicted investor involved in several frauds, only a few close ones know how he has repaid most of the borrowed funds. At the same time, a few transactions are still being reviewed and concluded. Over the years, he has worked hard to do just the right thing.

Ketan decided a long time ago that he would face all the charges against him. While others in his position would – and have, as we have seen over the past decade – fled the country, choosing to live a life of luxury abroad, Ketan has made unending attempts to make amends. To that end, over the past 20 years, Ketan has followed the journey of the cases filed against him through the Indian judicial system and accepted the restrictions placed upon him by the Court.

However, he remains misunderstood by the world. Ketan is still remembered for the allegations made against him 20 years ago but people rarely try to verify the truth behind the allegations and therefore never discover the steps he has taken to correct the wrongs. Ketan’s life has been unlike anything known by the public, full of terrific ups and devastating lows.