By- Ranisha Agrawal
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Ranisha Agrawal


Was Harshad Mehta a stock market hero?

Reality Check

Heros are not made in a day ,they are the most important characters , inspirational, role models for people .


  • If we go through the life story of our biggest scam champ Harshad Mehta he was also an ordinary being who did his studies from a college in Mumbai and went on with jobs in various companies.
  • Then curious towards the functioning  of stock markets , he became a stockbroker.
  • He did jobs for 3 years and after gaining experience , he started his own trading account. While, he earned 3 lakh rs in 3 years, on the other hand he lost 10 lakhs in 10 mins after opening his own trading account. 
  • What he used to do ?He would  manipulate people that he did insider trading, but instead he just spread fake news that on a particular day these share prices would rise so that he could influence  the buyers to purchase those shares and he would also buy a large part , so that at the end a large amount of profit would be in his hands .
  •  After suffering a huge loss of 10 lakhs, his trading account was suspended for a long time .
  • Did he stop ? He started a new consultancy firm as a broker. Now the hero moved a step ahead and opened up a company named ‘Grow more research and asset management company’ and then his broking business grew on.
  •  Harsha Mehta always had his eyes on BSE and never stopped dreaming of becoming the best broker.

Now you all know commercial banks sell government securities to one another when in need of the funds and repay the amount of cash afterwards in return to take the securities back.

Now Harshad Mehta was a mediator between the banks , and eventually he was smart enough to enjoy and make money  through the loopholes in our system.


As an example suppose there were 2 banks A and B , where bank ‘A’ wants to purchase gov securities, then Harshad would take a cheque from bank A on his name and demand time from them to give them the securities.

Now a seller bank ‘B’ offers to sell his securities  , Now harshad would take securities from the bank and would keep them on hold.

He used these funds and securities to manipulate the prices of stocks in the market.

Banks were not aware of which bank they are dealing with.

And when the banks demanded their money and securities he would once again find different banks and proceeded the dealings in the same manner,and  paid the money which was earlier on hold.

  • Many magazines regarded him as the Amitabh Bacchan of the stock market .
  • He was the greatest individual tax payer of that time of around 26 crore
  • He led a lavish life with a bungalow and costly cars such as Lexus and starlit which even many rich people could not afford.
  • He was known as the big bull in the eyes of the public 
  • Harshad used brainful starters by just keeping money on hold from the people and made surplus money . The condition here is he lasted only  till the stock market was going through a  bullish operiod .
  • It's the same system as to when we take loan from someone and to repay him back we take loan from another person.

“He was not a monster ,he was just ahead of the curve”

He was a smart businessman with a criminal mind . He later on did the real fraud of making fake 

bank receipts but he had no intention of taking away the money or  running away 

He just wanted time so that the stock market could generate him revenue which could be used to make more funds and manipulate the financial markets .

The scam operators at some point in their life get caught , because eventually every time the stock market cannot be at peak or the bullish phase.

Planning , brainstorming , thinking , having the dedication to do such kind  of things makes Harshad a hero in the eyes of the public 

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