Scam

The Ketan Parekh Scam The Crash that Shook the Nation The 176-point1 Sensex2 crash on March 1, 2001 came as a major shock for the Government of India, the decline merchandises and the investors alike. to a greater extent so, as the Union budget tabled a day earlier had been acclaimed for its festering initiatives and had prompted a 177-point increase in the Sensex. This sudden crash in the stock markets prompted the Securities Exchange Board of India (SEBI) to launch immediate investigations into the irritability of stock markets. SEBI also decided to inspect the books of several brokers who were hazard of triggering the crash. Meanwhile, the Reserve commit of India (RBI) social clubed some banks to furnish selective information related to their capital market exposure. This was after media reports appeared regarding a closed-door sector bank3 having exceeded its prudential norms of capital exposure, thereby contributing to the stock market volatility. The panic run on the bourses continued and the Bombay personal line of credit Exchange (BSE) President Anand Rathis (Rathi) resignation added to the downfall. Rathi had to resign following allegations that he had used some privileged information, which contributed to the crash. The scam shook the investors corporate trust in the overall functioning of the stock markets.

By the difference of March 2001, at least eight people were account to have committed suicide and hundreds of investors were driven to the brink of bankruptcy. 1 A change of Re. 1 in the price of a take when one speaks of a share rising or fall by so many points. In stock market indices, however, a point is one unit of the composite plodding reasonable on market capitalization of rupee values. 2 A stock market index indicating weighted average of 30 scripts, also known as the BSE peeled Index. The daily closing figure of this index broadly reflects the exertion of the capital markets. 3 It was alleged that Global Trust Bank exceeded its Capital market exposure. The scam opened up the flip over banks... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .