Ethics & Values

Semester - IV

Group Assignment

Ketan Parekh scam

Submitted To
Prof. Tejpal Seth
Akanksha Khargharia 227305
Akshat Jain 227306
Amar Sorathiya 227307
Anurag Mukherjee 227308

Nirma University
Institute of Management
Integrated BBA-MBA
2022-27

1
 Contents

SR. CONTENT PAGE NO.

1 Introduction

2 Rise and fall of Ketan Parekh

3 Legal inspections and regulatory responses

4 Impact on Financial System and Investor

Confidence

7 Reforms and Policy Measures after the Ketan

Parekh Scam

8 Lessons Learned and Future Implications

9 Conclusion

10

2
Introduction
1. Background of Ketan Parekh
Ketan Parekh: From Budding Broker to Controversial Figure

Ketan Parekh's early life reveals a contrasting character with both ambition and potential
danger. Emerging from a family of stockbrokers, he qualified as a chartered accountant but
gravitated towards the thrill of the market. Joining Narbheram Harakchand Securities in the
late 1980s, he started conventionally. However, a fateful encounter with Harshad Mehta, the
infamous "Big Bull" involved in the 1992 securities scam, proved pivotal. While not directly
implicated, Parekh absorbed crucial manipulation techniques and established valuable
connections

He later established NH Securities, showcasing an aggressive yet charming personality that

attracted investors. This facade masked a willingness to push boundaries, laying the
foundation for future controversies.

(Source: Wikipedia: https://en.wikipedia.org/wiki/Ketan_Parekh:

https://en.wikipedia.org/wiki/Ketan_Parekh).

2. Economic Context of Late 1990s Indian Stock Market

Boom and Bust: The Late 1990s Indian Stock Market

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The late 1990s Indian stock market was a crucible for Parekh's rise and fall. Several factors
fuelled this volatile environment:

 Liberalization: Economic reforms initiated in 1991 led to increased foreign investment

and a market-oriented economy, creating excitement about India's growth potential
 Technology Revolution: The rise of the internet and IT companies sparked a "dot-com
bubble" similar to the one in the US, with investors pouring money into tech
stocks, hoping for exponential returns.
 Lax Regulations: The regulatory framework for the Indian stock market was still
evolving, leaving gaps that ambitious players like Parekh could exploit

This confluence of factors created a perfect storm – a market ripe for both innovation and
manipulation. Savvy players like Parekh saw an opportunity to exploit its loopholes and ride
the wave of investor enthusiasm.

(Source: iPleaders: https://blog.ipleaders.in/ketan-parekh-

scam/: https://blog.ipleaders.in/ketan-parekh-scam/)

The Rise and Fall of

Ketan Parekh
1. Early Career and entry into stock market
 Parekh, a chartered accountant by profession, started his career in the early 1990s
with a small brokerage firm (Greengold Brothers). His initial focus was on arbitrage
opportunities (exploiting price differences between markets), demonstrating quick
thinking and sharp financial acumen.
 He later moved to Hiten Dalal & Co., where he honed his understanding of the market
and built connections with influential individuals. His aggressive trading style and
willingness to take risks started attracting attention.

(Ketan Parekh -
Wikipedia, https://en.wikipedia.org/wiki/Ketan_Parekh)
2. Establishment as a
prominent stockbroker
In 1992, Parekh established his own brokerage firm, "Ketan Parekh Securities Limited"
(KPSL). He focused on undervalued, small-cap stocks with high growth potential. His bold
investment strategies and charismatic personality helped him attract wealthy individuals and
institutions as clients.

Parekh's ability to generate high returns for his clients fuelled his reputation. He became
known as "The Pentafour Bull" due to his aggressive buying stance in specific stocks,
pushing their prices upwards. This period saw KPSL's net worth increase significantly,
solidifying Parekh's position as a prominent figure in the Indian stock market

(Ketan Parekh -
4
Wikipedia, https://en.wikipedia.org/wiki/Ketan_Parekh)
3. Parekh's Investment Strategies and Market Influence
Parekh's investment strategy heavily relied on leverage, borrowing large sums from banks
and financial institutions to amplify his buying power. He also allegedly formed "rings" with
other brokers and influential individuals to manipulate the prices of specific stocks,
infamously known as the "K-10".

This strategy initially yielded impressive results, with the "K-10" stocks witnessing
exponential price increases. Parekh's influence on the market grew significantly, and his
actions impacted not only individual investors but also broader market sentiment.

Source: https://www.scribd.com/presentation/239684801/Ketan-
Parekh

4. Emergence of Market Manipulation Allegations

As Parekh's influence grew, concerns about his aggressive tactics and potential market
manipulation started surfacing. In 2001, discrepancies in trades involving KPSL and
Madhavpura Mercantile Cooperative Bank triggered an investigation by the Securities and
Exchange Board of India (SEBI). Journalist Sucheta Dalal further exposed inconsistencies in
Parekh's trades, raising public awareness about the alleged manipulation.

Investigations revealed complex networks of circular trading, forged documents, and inflated
share prices. The market lost confidence in Parekh's strategies, leading to a sharp decline in
the "K-10" stocks, impacting the broader market and triggering a mini-crash.

(Ketan Parekh -Wikipedia, https://en.wikipedia.org/wiki/Ketan_Parekh)

Time line - 1

Date Events

Ketan Parekh, a stockbroker, initiates a scheme manipulating stock prices,

1999
primarily in technology stocks.

Ketan Parekh's manipulative practices become apparent as stocks he controls

January
2001 experience unusual price fluctuations.

Securities and Exchange Board of India (SEBI) launches an investigation into

March 2001
Ketan Parekh's activities.

April 2001 SEBI bans Ketan Parekh from trading in Indian stock markets.

May 2001 Ketan Parekh's involvement in the Global Trust Bank scam is revealed, causing

5
 panic in the markets.

The Reserve Bank of India (RBI) intervenes to prevent a systemic collapse by

June 2001
providing liquidity support.

Ketan Parekh is arrested by Indian authorities for his role in the stock market
December
2001 manipulation.

Ketan Parekh is convicted and sentenced to 2 years in prison for his

January
2003 involvement in the scam.

May 2008 Ketan Parekh is released from prison after serving his sentence.

(Source: https://blog.ipleaders.in/ketan-parekh-scam/#Timeline_of_the_case

Time Line - 2

Year Month Events

2001 Mar K-10 shares cause Sensex loss, SEBI investigation starts

Mar Sensex falls, Ketan Parekh among defaulters

Mar Arrested by CBI for Madhavpura Mercantile scam

Apr SEBI bans Ketan Parekh's firms from new business

Apr Zee denies lending, raising funding questions

Apr SEBI committee formed to address circular trading

May Released on bail with conditions

Aug Rearrested for fraud and misappropriation

6
 Dec Arrested in Calcutta, granted bail

2002 Feb Court dismisses plea to lift business ban

SEBI restricts trading of Global Trust Bank shares for Ketan

Jun Parekh firms

Jun SEBI bans Ketan Parekh and associates for 14 years

Dec Government files petition to recover funds

2003 Jan Surrenders in Calcutta court

Jun Agrees to pay dues to Bank of India

Mar SEBI cancels registration of broking entities

2004 Jan Released from prison

Mar SEBI cancels registration of broking entities

Jun Government files petition against M/S Kopran Limited

Debate in Lok Sabha on Credit Information Companies

2005 May regulation

Jun Credit Information Companies Act comes into force

Case filed to investigate Ketan Parekh's acquisition of Shonkh

2006 Apr Technologies shares

Jul Petition challenging SEBI ban dismissed

Nov Petition against penalty on companies dismissed

2007 Aug Appellate Tribunal orders partial penalty payment

2008 Jan NH Securities Ltd challenges order

7
 Jan M/s.Triumph International Finance India Ltd. challenges penalty

2009 Mar Appeal against tax penalty allowed

2011 Nov Appeal for dismissal of penalty order dismissed

2014 Mar Sentenced to 2 years with fine for cheating

2017 Nov Sent to judicial custody for non-appearance

2018 Feb Found guilty of fraud under SEBI Act, imprisoned for 3 years

(Source: https://blog.ipleaders.in/ketan-parekh-scam/#Timeline_of_the_case

Unveiling the Scam- (ref- 8)

Ketan Parekh was highly inspired by Harshad Mehta and learned from his mistake to use a
different strategy than his mentor to pull off the 2nd biggest scam in the history of the Indian
stock market. He figured out the mistake of Mehta, where he used to get funds in the form of
bank receipts and invest those funds directly or indirectly in specific stocks. This exaggerates
the demand for those stocks and gets market attention, resulting in massive investment by
retail investors.

After the 1992 scam, rules and security measures became very strict in the Bombay Stock
Exchange (BSE). Due to this reason, Parekh decided to shift his operations to the Calcutta
Stock Exchange (CSE) as it was comparatively less strict and could be manipulated by him.

There were four principles Parekh used to pick his stocks-

1. The business should be small and easy to manipulate.

2. The market capitalisation of the company should be low, as less market capitalisation
would require less money to influence.

3. The trade volume should be low, i.e. the number of buy and sell orders should be less.

4. The prospect of the company should be high so that its manipulation should seem fair to
investors due to its future prosperity.

8
By considering these four principles, Parekh decided to invest in low-liquidity IT and telecom
firms, later termed ‘ICE’ (information, communication, entertainment).

Strategies used for manipulation –

A general tendency of any investor is to get maximum returns in minimum time. Parekh used
two major strategies to target the greed of investors.

• Pump and dump strategy-

In this strategy, Parekh used to target stocks of any particular company and buy the majority
of stakes in it even up to 20-30% and increase the demand for those stocks which created a
price rise. This sudden price rise will influence other investors to bet their money on it,
resulting in higher demand and higher price rises. When the prices reached their highest point
he pulled out his investment from it.

• Circular trading strategy-

This strategy is similar to pump and dump only Ketan Parekh was disguised in this strategy.
He instructs amateur or junior traders to engage in frequent buying and selling of specific
shares throughout the day at his direction. This practice artificially inflates the "traded
volumes," creating the perception of heightened activity in those stocks. Investors relying on
trading volume as a decision-making factor may view these stocks as active and decide to
invest. As the prices experience a surge, he capitalizes on the upward movement to generate
profits. In return for their participation, the traders receive a modest commission.

Image source- circular trading in stock market - Search Images (bing.com)

Fund Manipulation- (ref no - 7)

Ketan Parekh who was working in Harshad Mehta’s firm during the scandal learned from his
mistakes. In his scandal, Parekh was not only relying on retail investors but was also

9
involving promotors and institutional investors. By using his circular trading strategy prices
of the stocks he selects get a massive hike which ultimately gets high media attention and its
trade volume increases which attracts institutional investors.

Ketan Parekh had some good connections and networks in the industry which made it easier
for him to convince the promotors of the company and raise money from them. But the major
source of his funds was the bank pay orders. A pay order, also known as a banker's cheque, is
a secure payment instrument issued by a bank on behalf of a customer. It guarantees payment
of a specific amount to a named payee and is essentially a pre-funded payment.

Ketan Parekh bought major stakes in the Ahmedabad-based bank Madhavapura Mercantile
Cooperative Bank (MMCB) and Global Trust Bank (GTB). This helped him manipulate the
internal management of the bank to issue him loans easily. He also pledged his stake in the
bank to get more pay orders to buy the shares of K-10 companies. According to RBI’s report,
he took a loan of around 800 crore INR from MMCB and around 100 crore INR from GTB.
However, as per RBI’s guidelines in the early 2000s, banks cannot issue loans of more than
15 crore INR to any businessman.

Exposure of scandal – (ref- 9)

Ketan Parekh was manipulating the market for many years still no one was able to figure out
this manipulation. Some of the major reasons were his low profile lifestyle which was
keeping him away from spotlight and he was investing stocks of CSE where the regulations
were loose as compared to BSE. Another reason was he used to buy stocks on other’s demat
account instead of his own.

Things were going smooth in favour of Ketan Parekh until the market crash of early 2000
which was influenced by the NASDAQ (New York stock exchange). Due to the crash in
NASDAQ, the bear cartel started to short more shares. Ketan Parekh’s traditional method of
leveraging shares as collateral for bank loans proved an effective fundraising strategy during
upward trends of market. To fight this crash Parekh needed more funds to increase demand
orders in the market and he turned to MMCB for those funds but this time he needed funds
without any collateral security. Due to his influence in the bank he was allowed for the loan
without security. But the condition of bank was not good it was on the verge of bankruptcy.
And the brokers who used to trade on behalf of Parekh was not able to control the crash.

Due to the massive fall in the market SEBI interfered and changed some rules and
regulations. It banned the trading in all the stock exchanges. Soon like all other stories his
master plan reached its deadly fall and SEBI figured out about the whole scandal.

Legal Investigations and Regulatory Responses

10
The Ketan Parekh stock manipulation incident of 2001 had a huge influence on the Indian
financial system, prompting numerous judicial probes and regulatory countermeasures.

SEBI and Regulatory Oversight:

 SEBI initiated a comprehensive inquiry after suspecting Ketan Parekh and his
accomplices of price manipulation. The inquiry included an examination of 20 major
actors' trade records as well as the participation of banks and organisations involved
(Ministry of Finance, 2006).
https://eparlib.nic.in/handle/123456789/783370?view_type=search

 Orders and Penalties: The SEBI imposed penalties and restrictions on the entities
implicated. This includes prohibiting Ketan Parekh and his associates from trading for
14 years and imposing financial penalties on brokerages and banks deemed to have
assisted his actions (SEBI, 2006).
https://www.sebi.gov.in/satorders/ketanorder.pdf

 Regulatory Reforms: The scam prompted a number of regulatory changes, including

tougher margin requirements, improved monitoring measures, and stock exchange
corporatization (RBI, 2011; Impact of Securities and Financial Scams on Regulatory
Framework, n.d.).
https://www.researchgate.net/publication/
240259327_The_Ketan_Parekh_fraud_and_supervisory_lapses_of_the_Reserve_Ban
k_of_India_RBI_A_case_study

https://sciarena.com/storage/models/article/
jOZJ5mmRakZ2Kt3OYoBC3iWhW4CZu2tCYUoAa6LoHR7wYMtciCt31yuPXvee/
impact-of-securities-and-financial-scams-on-regulatory-framework.pdf

Arrests and Interrogations of Key Figures:

 Ketan Parekh and his friends were detained by Mumbai police in March 2001 and
interrogated for months (The Economic Times, 2001).
https://economictimes.indiatimes.com/topic/ketan-parekh-scam

 Law enforcement agencies questioned and probed other individuals involved,

including brokers and bankers.

 Due to privacy concerns, no particular information regarding the interrogation

procedure is provided to the public.

Judicial Proceedings and Court Trials:

11
  Ketan Parekh and others face charges under several sections of the Indian Penal Code
and the Securities and Exchange Board of India Act of 1992.

 The trial was protracted and complex, with numerous witnesses and financial records.
In 2007, Ketan Parekh was convicted of stock price manipulation and sentenced to
two years in prison (BBC News).
http://news.bbc.co.uk/2/hi/south_asia/1253375.stm

 Appeals were filed, and the final ruling is not yet publicly available owing to ongoing
legal actions.

Impact on Financial System and Investor Confidence

The Ketan Parekh stock manipulation incident in 2001 had a huge influence on India's
financial system and investor trust.

Market Fallout and Investor Panic:

 Sharp reduction in stock prices: The manipulation artificially inflated prices, resulting
in a 35% drop in the BSE Sensex following the scandal's disclosure (RBI, 2011).
https://www.researchgate.net/publication/
240259327_The_Ketan_Parekh_fraud_and_supervisory_lapses_of_the_Reserve_Ban
k_of_India_RBI_A_case_study

 Individuals and institutions suffered significant financial losses, weakening trust in

the market's integrity (Ministry of Finance, 2006).
https://eparlib.nic.in/handle/123456789/783370?view_type=search

 Panic selling and withdrawal: Fearful investors sold their shares, lowering prices and
liquidity (BBC News, 2001).

Banking Sector Vulnerabilities:

 Bank exposure to Ketan Parekh's manipulations: Several banks financed and aided
his actions, exposing them to financial danger (Economic Times, 2001).
https://economictimes.indiatimes.com/topic/ketan-parekh-scam

 Concerns concerning regulatory oversight: The incident exposed weaknesses in

the banking sector's risk management and internal controls (RBI, 2011).
https://www.researchgate.net/publication/
240259327_The_Ketan_Parekh_fraud_and_supervisory_lapses_of_the_Reserve_
Bank_of_India_RBI_A_case_study

12
  Erosion of public faith in banks: Banks' involvement in the crisis affected their
reputation and resulted in heightened scrutiny.

Loss of Market Credibility and Trust:

 Damage to India's image as an emerging market: The controversy highlighted
questions about market openness and integrity, undermining foreign investor trust
(Business Standard 2001).

 Increased scepticism towards listed companies: Investors got concerned about market
manipulations and questioned

Reforms and Policy Measures after the Ketan Parekh Scam

The Ketan Parekh scam of 2001 revealed critical vulnerabilities in India's stock market
regulations, prompting significant reforms and policy measures to protect investors and
ensure market integrity.

Post-Scam Regulatory Reforms:

Strengthening SEBI's Powers:
1. SEBI Act Amendments (2002 & 2003): The Securities and Exchange Board of India
(SEBI) Act underwent amendments in 2002 and 2003, empowering SEBI with wider
investigative, search, and seizure powers. These amendments allowed for more
proactive and effective action against market manipulation.
Reference: SEBI Act, 1992 (Amended 2002 & 2003)

2. Enhanced Penalties: Stricter penalties for market manipulation and insider trading
were introduced to act as deterrents and promote ethical behavior among market
participants.
Reference: SEBI (Amendment) Act, 2002

3. Expanded Jurisdiction: SEBI's regulatory authority was extended to cover new

financial instruments and intermediaries, ensuring broader market oversight and
regulation.
Reference: SEBI Act, 1992

4. Improving Market Efficiency and Transparency:

5. Circuit Breakers: Mechanisms were implemented to automatically halt trading when
price fluctuations exceeded certain limits, preventing panic selling and stabilizing the
market during periods of extreme volatility.
Reference: SEBI (Circuit Breakers) Regulations, 2003

13
 6. Settlement Cycle Shortening: The settlement cycle was reduced from T+9 to T+2,
significantly improving market liquidity and transparency by ensuring faster
completion of trades.
Reference: SEBI (Central Database of Market Participants) Regulations, 2003

7. Depository System Enhancement: Measures were taken to promote wider adoption

of depositories like National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL) for holding securities electronically,
reducing physical certificate manipulation and simplifying transactions.
Reference: Depositories Act, 1996

8. Regulation of Short Selling: Regulations were introduced to curb excessive short

selling and prevent its use for market manipulation, protecting long-term investors
and promoting market stability.
Reference: SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to
Securities Market) Regulations, 2003

Strengthening of Corporate Governance Standards:

Promoting Independent Oversight:

Clause 49: Listed companies were mandated to have independent directors on their boards,
constituting at least one-third of the total directors. This ensured greater objectivity, reduced
insider influence, and promoted responsible decision-making.
Reference: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Enhancing Transparency and Accountability:

1. Improved Disclosures: Enhanced requirements were introduced for companies to

disclose financial information, related party transactions, and corporate governance
practices, increasing transparency for investors.
Reference: SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015

2. Code of Conduct for Board Members: A code of conduct was established for board
members, outlining ethical guidelines and promoting responsible decision-making and
accountability.
Reference: SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015

Protecting Investor Interests:

Investor Protection Guidelines: Guidelines were introduced for companies to deal with
investors' grievances and complaints in a timely and effective manner, improving
communication and building trust.
Reference: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

14
Investor Protection Initiatives and Education Campaigns:
Safeguarding Investor Funds:
SEBI Investor Protection Fund: A fund was established to compensate investors for losses
suffered due to fraudulent activities by registered intermediaries, providing a safety net and
fostering trust in the market.
Reference: SEBI (Investor Protection and Education Fund) Regulations, 2009

Addressing Investor Grievances:

Investor Grievance Redressal Mechanism: Grievance redressal channels for investors were
streamlined, facilitating quicker resolution of issues and improving investor confidence.
Reference: SEBI (Investor Grievance Redressal Mechanism) Regulations, 2003

Building Investor Knowledge and Awareness:

1. Investor Education and Awareness Campaigns: Comprehensive initiatives were
launched to educate investors about capital markets, investment risks, and their rights,
empowering them to make informed decisions and participate actively in the market.
Reference: SEBI (Investor Education and Protection Fund) Regulations, 2009

2. Investor Protection Guidelines: Guidelines were issued for market intermediaries to

conduct investor due diligence and provide appropriate risk disclosures, ensuring
investors are adequately informed before making investment decisions.
Reference: SEBI (Investment Advisers) Regulations, 2013

Impact and Ongoing Challenges:

These reforms have significantly strengthened the Indian financial system, restored investor
confidence, and improved market integrity. However, ongoing vigilance, monitoring, and
adaptation of regulatory frameworks are necessary to address emerging challenges and ensure
a robust and investor-friendly financial ecosystem.

Lessons Learned and Future Implications

Analyzing Systemic Weaknesses and Loopholes
The Ketan Parekh scam of 2001, a stark demonstration of market manipulation and
regulatory deficiencies, shed light on inherent weaknesses within India's financial system. A
comprehensive analysis of these systemic vulnerabilities is paramount to comprehend the
underlying factors that facilitated the scam and to fortify the system against future risks.

The Joint Parliamentary Committee on Stock Market Scam and Matters Relating Thereto
conducted an extensive investigation into the scam, identifying deficiencies in regulatory
oversight, market surveillance, and corporate governance practices (Sen, 2003).
Similarly, the Committee on Financial Sector Reforms highlighted key areas requiring
attention, including lax enforcement of regulations, inadequate disclosure norms, and
insufficient market supervision (Jalan, 2002). [1,2]

15
Importance of Transparency and Accountability
Transparency and accountability serve as the bedrock of a robust financial ecosystem, crucial
for maintaining market integrity and investor confidence. The Ketan Parekh scam
underscored the imperative of transparent disclosure practices, independent oversight
mechanisms, and ethical conduct to uphold the credibility of financial markets.
Initiatives such as the implementation of stringent disclosure requirements, as outlined in the
Corporate Governance: Issues and Practices report by the Bombay Stock Exchange (BSE,
2002), have played a pivotal role in enhancing transparency and accountability standards.
Similarly, the Disclosure and Investor Protection Guidelines issued by the Securities and
Exchange Board of India (SEBI, 2003) have been instrumental in promoting a culture of
integrity and accountability among market participants. [3,4]

Prospects for Restoring Market Integrity and Stability

Despite the challenges posed by the Ketan Parekh scam, there are prospects for restoring
market integrity and stability through concerted efforts from regulatory authorities, market
participants, and policymakers.
Robust regulatory reforms, as recommended in the Annual Report 2001-2002 by SEBI
Chairman U. K. Sinha (2002), and the Report of the High Powered Expert Committee on
Making Mumbai an International Financial Centre (Ministry of Finance, 2003), are essential
for rebuilding trust and confidence in the financial system.

These reforms encompass measures to strengthen regulatory oversight, enhance market

surveillance capabilities, and promote ethical conduct among market participants, thus paving
the way for a resilient and investor-friendly financial ecosystem. [5,6]

Conclusion

16
References

1. Sen, A. (2003). Report of the Joint Parliamentary Committee on Stock Market Scam
and Matters Relating Thereto. Retrieved from
http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on
%20Finance/39.pdf

2. Jalan, B. (2002). Report of the Committee on Financial Sector Reforms. Retrieved

from https://rbidocs.rbi.org.in/rdocs/content/pdfs/72456.pdf

3. BSE (Bombay Stock Exchange). (2002). Corporate Governance: Issues and

Practices. Retrieved from
https://www.bseindia.com/static/about/corporate_governance_practices.pdf

4. SEBI. (2003). Disclosure and Investor Protection Guidelines. Retrieved from

https://www.sebi.gov.in/sebi_data/commondocs/nov-2019/DisclosureAndInvestorProt
ectionGuidelines_p.pdf

5. Sinha, U. K. (2002). Annual Report 2001-2002. Securities and Exchange Board of

India. Retrieved from https://www.sebi.gov.in/sebi_data/attachdocs/jul-
2017/1499814012608.pdf

6. Ministry of Finance. (2003). Report of the High Powered Expert Committee on

Making Mumbai an International Financial Centre. Retrieved from
https://dea.gov.in/sites/default/files/High_Powered_Expert_Committee_Report_1.pdf

7. Khandekar, S. (2023). Case Study — the 2001 Ketan Parekh Stock Market Scam. -
A Case Study On Ketan Parekh Scam | PDF | Financial Markets | Stock Market (scribd.com)

8. Samaddar, D. P. (2020, March 16). Ketan Parekh Scam: All that you must know, by
Finology. - Ketan Parekh Scam: All that you must know (finology.in)

9. Varghese, C. (2022, August 2). The Ketan Parekh Scam of 2001, by Marketfeed. -
The Ketan Parekh Scam of 2001 | marketfeed

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