Who’s Ketan Parekh And Why’s He Bad For The Market?

Ketan Parekh, often referred to as India’s second “Big Bull,” made headlines in the late 1990s for his aggressive stock market tactics, which later led to his downfall. Trained by the infamous Harshad Mehta, Parekh filled the gap left after Mehta’s financial scandal, using market manipulation techniques that brought immense profits to himself and the promoters he worked with.

A Rise Fueled by Market Manipulation

In the late 90s, Ketan Parekh quickly became one of the most well-known brokers on Dalal Street, known for turning underperforming stocks into high flyers. His expertise, however, was not just in stock picking but in using illegal methods to inflate stock prices and manipulate market behavior. For several years, Parekh worked with company promoters, manipulating shares for profit, which ultimately fueled his success.

The Fall of the “Big Bull”

In 2001, Ketan Parekh’s empire crumbled. A payment crisis triggered by a beer scandal in Kolkata led to investigations by market regulators and financial authorities. Parekh, also known as “KP,” was exposed as a rogue trader and was banned from trading in the stock market for his involvement in illegal market activities, such as circular trading and share rigging. His trading strategies often involved inflating stock prices to benefit company promoters and himself, before dumping devalued shares on financial institutions like UTI and LIC.

Legal Troubles and the Ban

Parekh’s involvement in market manipulation, which led to massive financial losses for investors, earned him a one-year jail sentence. His broker firm, NH Securities, gained notoriety, and even after the ban imposed by the Securities and Exchange Board of India (SEBI), many still secretly worked with him in the shadows. Despite his legal troubles, Parekh managed to maintain a low profile, distancing himself from the public eye, though rumors about his continued influence in the market persisted.

A Quiet Life After the Ban

After serving his sentence and facing the ban in 2001, Parekh retreated from the limelight, living a more quiet and reclusive life. Despite this, he was linked to several prominent individuals and companies. Even today, his name carries weight in the stock market, and he remains a figure of intrigue. Reports suggest that, despite being barred from trading, Parekh’s influence continues to seep through the market’s underbelly, with some believing he still operates from the shadows through proxies.

A Stock Market Villain

Ketan Parekh’s legacy is one of manipulation, fraud, and financial scandals. As the mastermind behind some of the most notorious stock market manipulations in India, Parekh is a cautionary tale for investors. His actions serve as a stark reminder of how unchecked power and unethical practices can damage the financial markets and harm ordinary investors.

The Unseen Influence of Ketan Parekh

Though officially banned from stock market activities, Ketan Parekh’s legacy continues to be felt. His influence lingers in the form of secretive operations, with people in the market still referring to him as a “demigod” for his skill in stock manipulation. In many ways, Parekh represents the darker side of India’s stock market, a side that many still hope to avoid.

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