Author: Divyanshu Krishna, Student at B.B.D. University, Lucknow
INTRODUCTION
The Harshad Mehta scam is also known as the 1992 stock market scam. The said scam was one of the largest financial frauds of Indian history. The Harshad Mehta was mastermind of said scam. Through this scam approximately ₹1,439 crores (equivalent to nearly $3 billion at that time) amount was defalcated. As a result, Indian stock market was drastically crashed. The said scam reportedly resulted in a loss of around ₹4,000 crores (approximately $1 billion) to banks and investors. The scam had a significant effect on the Indian economy and resulted in significant changes to financial regulations.
