In the past 20 years since the securities scam was exposed, radical transformation and...
On 23rd April 1992 Sucheta Dalal broke the securities scam. In the latest issue of Moneylife she recounts how she broke the story, and how hundreds of court cases have meandered for two decades with no end in sight. Debashis Basu tracks the post-scam market reforms in a separate piece. On the stands now. Buy a copy today!
On 22 April 1992, exactly 20 years ago, an acquaintance of the news editor of The Times of India tipped off Sucheta Dalal about an incredible story. Harshad Mehta, arguably the only superstar the Indian stock market has seen and known by the moniker Big Bull, had been summoned by the State Bank of India (SBI). I was told that Harshad Mehta—whose apparent stock-picking prowess had made him a media darling—had been asked to pay up Rs500 crore immediately and was to hand over a cheque the next day. Harshad, with a following to match a film star or a cricketer, caused a flutter at the Bank by arriving in his Toyota Lexus—which, at Rs40 lakh+, was among the most expensive cars in the market at a time the Indian economy was just opening up...
This is an excerpt from the cover story in the latest issue of Moneylife. Pick a copy today.
The Scam, the only book on the two biggest securities scaam, is a perennial top seller among business books. Now in its 7th printing, the book reads like a thriller.
" During discussions that night, Subba Rao called R Sinha, chief general manager (vigilance). They discussed the course of action and then planned to go to the Chairman, Maneck N Goiporia’s house. But they were told that Goiporia was out meeting somebody and would return only after 10 pm. It was then that Khemani and Subba Rao decided that Sitaraman should be called back….They even sent somebody over to the branch and broke open Sitaraman’s drawer. It was a desperate move. There was nothing there..."
"The skyscraper that houses BSE hadn’t yet come up. There used to be a trading ring, where brokers and jobbers struck deals, located in the adjacent three-storied structure. The ring was a reserved area, open only to jobbers and brokers. Harshad was just an onlooker. But he had a burning desire to get in and do deals. He cajoled the doorman and stepped in to watch how the world of the stocks spun on its invisible axis. That afternoon a new chapter began in the life of Harshad Mehta. A totally unfamiliar world that would be his kingdom ten years later..."
The authors have excellent credentials for attempting this book, which takes the subject head-on which is its endearing quality. INDIA TODAY
Written in a racy style, the book weaves together the main players and the not-so-well-known sub-scams… The authors have done a commendable job… THE ECONOMIC TIMES
This book brings out all the details that a lay and even a not-so-lay reader may want to know now. The authors have to be complimented for their excellent expose. BUSINESS WORLD