...CHAPTER 1. 1.1 INTRODUCTION HISTORY OF HARSHAD MEHTA. Harshad Shantilal Mehta was an Indian stockbroker, well known for his wealth and for having been charged with numerous financial crimes that took place in 1992. Of the 27 criminal charges brought against him, he was only convicted of one, before his death at age 47 in 2001. It was alleged that Mehta engaged in a massive stock manipulation scheme financed by worthless bank receipts, which his firm brokered in "ready forward" transactions between banks. Mehta was convicted by the Bombay High Court and Supreme Court of India for his part in a financial scandal valued at 50 billion (US$770 million) which took place on the Bombay Stock Exchange (BSE). In reality he actually exposed the loopholes in the Bombay Stock Exchange (BSE) transaction system and SEBI further introduced new rules to cover those loopholes. He was tried for 9 years, until he died in the late 2001. Mehta was born on 29 July 1954, at Paneli Moti, Rajkot district, in a Gujarati Jain family. His early childhood was spent in Kandivali, Mumbai, where his father was a small-time businessman. Later, the family moved to Raipur, Chhattisgarh, where Mehta studied in Kalibadi Higher Secondary School. By profession Mehta was a Chartered accountant. Over a period of ten years, beginning 1980, he served in positions of increasing responsibility at a series of brokerage firms. By 1990, he had risen to a position of prominence in the Indian securities industry. He established...
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...htm&ei=3CTnUInpD8XXkAXy8YGIAg&usg=AFQjCNGa4sSOYe-mM9SHLOBcZLMhgR_uOA&bvm=bv.1355325884,d.dGI 2. What Harshad Mehta did? – The Stock Scam 3. In the early 1990s, the banks in India had to maintain a particular amount of their deposits in government bonds. This ratio was called SLR ( Statutory Liquidity Ratio). Each bank had to submit a detailed sheet of its balance at the end of the day and also show that there was a sufficient amount invested in government bonds. Now, the government decided that the banks need not show their details on each day, they need to do it only on Fridays. Also, there was an extra clause that said that the average %age of bond holdings over the week needs to be above the SLR but the daily %age need not be so. That meant that banks would sell bonds in the earlier part of the week and then buy bonds back at the end of the week. The capital freed in the starting of the week could then be invested. Now, at the end of the week many banks would be desperate to buy bonds back. This is where the broker comes in. The broker knew which bank had more bonds (called ‘plus’) and which has less than the required amount (called ‘short’). He then acts as the middleman between the two banks. Harshad Mehta was one such broker. He worked as a middle man between many banks for a long time and gained the trust of the banks’ senior management. Lets say that there are two banks A (short) and B (plus). Now what Harshad Mehta did was that he told the banker at A that he was dealing with many banks and hence...
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...An Analysis of the Securities Scam -Highlighting Harshad Mehta Synopsis Securities Scam, as it is called, is a name given to the diversion of funds from the banking system to a set of individual stockbrokers through a series of transactions. The duration of the scam was around 11 months, from May 1991 to April 1992. The report primarily describes: * The basic difference between capital market and money market * Why was their room for the scam to happen * How the scam got originated * Who were the key players * What system flaws turned a plan to a scam * How the plan got exposed * Response of the government * Impact of the scam * Policies required Starting with the basic explanation of capital markets and money markets, let us try to understand the points of difference between the two. Point of Difference | Securities Market | Stock Market | Key Players | * Banks * Financial institutions | * Individuals * Companies | Intermediaries | Around a dozen brokers approved by the Reserve bank of India | About 500 brokers approved by Bombay Stock Exchange | Capitalization | Rs 100000 crores | Rs 250000 crores | Finance | Formal money market | Informal money market (Badla market) | Cost of Finance | 18-20% | 35-40% | Number of Transactions | 250 per day | 50000 per day | Trading Volume | Rs 3000-4000 Crores per day | Rs 50-200 Crores per day | We can observe from the table that there is a great difference between...
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...by the deficiency of the enzyme glucocerebrosidase (Thomas, Mehta, and Hughes 427). This enzyme is responsible for the degradation of glycosphingolipids. Individuals with Gaucher’s disease do not have the ability to break down glucocerebroside. Because of this, glycosphingolipids accumulate in the lysosomes of cells. Some features of the disease include peripheral blood cytopenias, hepatosplenomegaly, bone disease, and even neurological manifestations (Thomas, Mehta, and Hughes 427). Gaucher’s disease can be classified into three types depending on the presence or absence of neurological features. Type I is characterized by the lack of central nervous system involvement (Thomas, Mehta, and Hughes 427). Type II is a severe neuronopathic form in infants with a life expectancy of less than two years (Thomas, Mehta, and Hughes 427). And lastly, Type III is a later onset of visceral involvement and survival into adulthood (Thomas, Mehta, and Hughes 427). As a consequence of an amino acid substitution in the resultant protein, its major substrate, N- acyl-sphingosyl-l- O- β-D-glucoside accumulates, is engulfed in macrophages, and clinically...
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...Calculating Returns: CAPM vs. DCF Kalen Hickey American Military University The Capital Asset Pricing Model (CAPM) and Discounted Cash Flows Method are different techniques for determining returns on an investment. These concepts deal with the time value of money and the other investment factors. “If decisions are made that ignore the interaction of scale and risk, then cash flows are misvalued and suboptimal operations decisions are made” (Lederer & Mehta). Companies use CAPM and DCF to figure out the greatest potential for highest yield of an investment based on average market returns. The Capital Asset Pricing Model (CAPM) takes the two factors of time value of money and market risk into account for determining risk of investment and returns. “One is the risk of being in the market which is called systematic risk. The other-unsystematic risk-is specific to a company’s fortunes” (Burton, p.20). The two risks are married together, otherwise one would expect to see a positive return on every risk which is never the case. The expected rate of return for the CAPM takes into account risk-free interest rate, a stock beta that determines the relationship between the entire market and an individual investment, and an expected return from a typical market such as the Dow Jones. “The formula states that the expected return of a stock is equal to the risk-free rate of interest, plus the risk associated with all common stocks (market premium risk), adjusted for the risk of the...
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...In Maximum City, Suketu Mehta describes dropping his son off at an urban school located in Bombay, a city with a population density ranging from 17,550 to 1 million people per square mile (Mehta 10). Mehta writes, “I can’t recognize my son. I can’t pick him out from the whole crowd of brown-skinned kids in white uniforms. For the first time in his life, he’s just like the others” (33). As Mehta watches from afar, he cannot distinguish his son own son from the other children. If Mehta cannot pick out his son from the crowd, how is it possible that a school teacher could properly supervise his or her students? Just like encountering strangers on city streets, attending overpopulated urban schools increases the likelihood that unsupervised children fall victim to negative influence . Unlike his friends back in Bombay, Mehta did not attend high school in the extremely dense city. Thus, when he returns for a visit at age seventeen he notes that “the city and [his] friends in it had grown wild and strange ways” (10). For instance, his friends all smoked cigarettes and drank heavily whereas Mehta did not. Participating in these adult activities in high school are conceivably a result of attending an overpopulated urban high school where there was a lack of true supervision. Children that are raised in...
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...Looking outside from his office at West Bandra overlooking the Arabian Sea, Mr. Mukesh Mehta sighed; he recalled when he first had the dream of creating a modern Dharavi – free of slums, where the poor, hardworking people will finally be able to enjoy a better quality of life and be integrated with the mainstream citizens. Throughout the history of the world, migrants have moved to the urban areas in search of a job so as to provide for their families. In most cases, they can find work, but not a place to live. Hence, without help from either developers or the government, they are forced to become squatters, building for themselves on undesirable and illegal properties. Dharavi, at the heart Mumbai, with 600,000 residents, is one such place and one of Asia’s largest slums. Mr. Mehta’s goal is to provide a decent standard of living to the people of Dharavi. He established himself as a celebrated realtor by building expensive custom homes for the rich in Long Island, New York, and now longed to build homes for the poor in the slums. He shared this dream with his family too. His son, Shyam, was very enthusiastic and regarded him as a “versatile” person who is capable of serving both the rich and the poor, while his wife considered him a “confused” person. He is, however, dedicated to pursue his dream of seeing that his heroes are living a far better life in a revamped Dharavi, free of slum. Mr. Mehta has been the management consultant for Dharavi Redevelopment Project (DRP) for more...
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...committed by him". Sebi said in a probe it noticed a spurt in the price ASCL shares during the period from October 10, 2008 to November 20, 2008. During the same period the benchmark Sensex had dropped over 19 percent. Sebi said it had observed that certain entities connected to each other had allegedly indulged in circular/reversal synchronised trading in a manner that led to creation of artificial volume in the scrips. Mathur is alleged to have had connections with the entities belonging to Mehta group, Sebi said. These entities had allegedly executed trades through broker Triveni Management Consultancy Services of which Mathur was the CEO, it added. Sebi said it noted that Mathur had acted as a link between the Mehta Group entities, financed their transactions to orchestrate manipulation in the scrip and "thereby connived with the Mehta Group clients in manipulating the price and volume of the scrip of ASCL". Sebi slaps Rs 5 lakh fine on a individual in BGSL trading case * Share 0 * * Share 0 * * * Mumbai, Dec 11 (PTI) Market regulator Sebi today slapped a fine of Rs 5 lakh on an individual for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities Ltd (BGSL). Securities and Exchange Board of India (Sebi) said a Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities....
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...For Office Use: Grade | | Written Analysis and Communication Individual Assignment No. 2 Case Analysis Report on “Pramanik Containers And The Bottleneck Challenge(A)” Submitted by: EXECUTIVE SUMMARY Piyush Mehta who has completed his MBA degree in family business joined his father business,his father is running pramanik Ltd. since 1977 and his major vendor since than is ABC Pharma,a leading MNC. Piyush on reviewing came to know that there is a problem in printing department. when he investigated further he came to know that there is no proper system of keeping plates used for manufacturing which resulting in delay of manufacturing process.Workers are also careless in doing their jobs.This events made piyush ask his father to tackle the situation in his own way and he agreed so. Word count :105 words SITUATIONAL ANALYSIS Pramanik Containers PVT Ltd. was a family business set up by Bansilal Mehta in 1977 to provide aerosols to ABC Pharma, a large multinational company. This deal started off as a joke turned into suppilier. As capabilities of Pramanik expanded more customers signed up to do business but ABC remained its key customer.(Exhibit 1). Piyush Mehta,the only son of Bansilal and also an MBA graduate in family business joined his father’s business in May 2010.Piyush started his work by reviewing order flows in the company and was particularly intrigued by printing department which showed signs of bottleneck. Pramanik...
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...relation to Directors’ remuneration and to the guidance of investor relation bodies. The report has been approved by the Board and signed on its behalf by the Chairman of the Remuneration Committee. A resolution to approve this report will be proposed at the Company’s Annual General Meeting to be held on 27 July 2009. Part I (Unaudited) Remuneration Committee (the ‘Committee’) The Board has established a Remuneration Committee in accordance with Provision B.2.1 of the Combined Code to determine on behalf of the Board the Company’s policy on the remuneration and terms of engagement of the Executive Directors and certain senior executives. During 2008–09 the Committee comprised: – Mr Naresh Chandra (chairman) – Mr Euan Macdonald – Mr Aman Mehta All three members of the Committee served during the year and are all independent Non-executive Directors. The Committee’s...
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...mNATIONAL GREEN TRIBUNAL, PRINCIPAL BENCH (NEW DELHI) CAUSE LIST Joint Sitting of Court No. I & 2 FARIDKOT HOUSE Date: 24th July, 2014 TIME: 11.00 AM HON’BLE MR JUSTICE Swatanter Kumar CHAIRPERSON HON’BLE MR JUSTICE Melath Sasidharan Nambiar JUDICIAL MEMBER HON’BLE Dr. Devendra Kumar Agrawal EXPERT MEMBER HON’BLE Prof. A.R. Yousuf EXPERT MEMBER HON’BLE Dr. R.C. Trivedi EXPERT MEMBER S.No 1. Case No. Appeal No. 67/2013 (M.A No. 573/2013) Parties Counsel For Parties FOR PRONOUNCEMENT OF JUDGMENT Sunil Kumar Samanta Mr. Jayant K. Mehta, Adv. for Appellant Vs West Bengal PCB & Ors. Remarks Mr. Amit Agrawal, Adv. for R – 1 to 5 Mr. Bikas Kar Gupta, Adv. for R - 6 Date: 24th July, 2014 TIME: After the above Bench HON’BLE MR JUSTICE Swatanter Kumar CHAIRPERSON HON’BLE MR JUSTICE Melath Sasidharan Nambiar JUDICIAL MEMBER HON’BLE Prof. A.R. Yousuf EXPERT MEMBER HON’BLE MR Bikram Singh Sajwan EXPERT MEMBER HON’BLE Mr. Ranjan Chatterjee EXPERT MEMBER S.No 1. Case No. Original Application No. 305/2013 Parties Counsel For Parties AFTER NOTICE Balam Singh Rawat Mr. S.K. Bhattacharya, Adv. for Applicant Vs Govt. of NCT of Delhi & Ors. Mr. Biraja Mahapatra, Adv. for R – 1 & 2 Mr. Rajkumar, Adv. for R – 3 Mr. Vikas Malhotra, Adv. for R – 4 Mr. Arun Kumar Sharma, Adv. for R – 5 Mr. B.V. Niren, Adv. for R – 6 Mr. Sunil Goel, Adv. for R – 7 Mr. Navneet Panwar, Adv. for R – 8 Mr. Narender Hooda, Sr. Adv. along with Mr. Vineet Malik, Adv. for State of Haryana Remarks 2. Original Application...
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...9-707-446 REV: JANUARY 28, 2008 JOHN R. WELLS Providian Financial Corporation Introduction On October 3, 2005, Washington Mutual acquired Providian Financial Corporation, the ninthlargest credit card issuer in the U.S., for $6.5 billion. At the time, Providian had approximately 10 million customer relationships and a balance of $18.6 billion. For some observers, the transaction was merely the end of another chapter in the history of the fast consolidating credit card market.1 For Providian CEO Joseph Saunders it was vindication of four years’ hard work in turning around a company that many thought was close to bankruptcy. Saunders reflected, “I actually think that we took over a company that many people—maybe even most people—thought was going to fail”; he added, “Providian is no longer just a turnaround story, we are a success story.”2 Company History Providian began as Commonwealth Insurance, which was founded in 1904. The company survived the depression of the 1930s and, in the late 1960s, formed Capital Holdings to acquire other insurance enterprises and financial services companies. In the 1980s Capital Holdings started targeting low- and middle-income people when it established itself in Kroger grocery stores and in certain Bank of America branches. The 1984 acquisition of First Deposit Corporation from Parker Pen marked the beginning of the compnay’s focus on credit cards, which “later became [its] primary profit-making operation.”3 In the 1990s, Capital Holdings...
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...As far as determining negligence is considered, courts have to depend on the advice of experts, except in cases of blatant violation of protocol and doing things which are considered to be unreasonable and imprudent. The law on the subject needs to be more precise and certain. That will surely give a better understanding about the “reasonable man”.In other words the doctor, does not have to adhere to the highest or sink to the lowest degree of care and competence in the light of the circumstance. He does not have to ensure that every patient who comes to him is cured. He has to only ensure that he confers a reasonable degree of care and competence. To err is human but who will own...
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...Assignment 4: Products Liability Research Paper Strayer University AUGUSTINE WEEKLEY Law, Ethics & Corp. Governance March 15, 2013 1. Describe the company and the product safety issue that led to the lawsuit. Toyota Motor Corp.'s announced massive recalls for acceleration and braking problems are creating a huge legal liability for the company and Toyota owners may share in the pain. The Japanese automaker faces dozens of lawsuits over injuries and deaths attributed to safety problems, with many more suits expected. Lawyers and legal experts said the lawsuits could be particularly expensive for the automaker if plaintiffs prove that Toyota was aware of problems but failed to correct them. (Hirsch, J and Pfeifer, S. 2010) On top of that, there are at least 30 lawsuits seeking class-action status to recover damages for the reduced value of the cars and the lost use of vehicles during repairs. Legal expenses and damages resulting from the safety defects could tack billions of dollars onto the $2 billion that Toyota had said it would cost the company in repairs and lost sales. That was before the global recall of 437,000 Prius and Lexus hybrids this week. Since the fall of 2009 Toyota has issued 10 million recall notices for problems related to unintended acceleration, with about 2 million vehicles subject to more than one recall. (Hirsch, J and Pfeifer, S. 2010) A Northeastern University law professor by the name of P. Tim Howard is leading...
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...International Journal of Business and Social Science Vol. 4 No. 8 [Special Issue – July 2013] Outsourcing: A Review of Trends, Winners & Losers and Future Directions Zafar Iqbal Lecturer Faculty of Administrative Sciences Kotli University of Azad Jammu and Kashmir MSc. University of Bedforshire, UK. Aasim Munir Dad PhD. Scholar The School of Business & Management University of Gloucestershire Cheltenham, GL50 2RH. Abstract The primary objective of this paper is to analyse the outsourcing trends in last one decade and to forecast the future on the basis of past studies. In this paper concepts and trends about outsourcing has been discussed on the basis of past studies. An extensive amount of literature review has been done to obtain the objective. This paper demonstrates the previous literature and findings. Outsourcing has become inevitable and virtually many of the multinationals are outsourcing to utilise scarce in-house resources. In this research it is being observed that owners of the companies are the prime winners in outsourcing and off shoring situation. Further, a detailed review of literature indicates that along with many other motives cost factor cause major influence in outsourcing decisions. There is an ultimate outcry over the jobs going overseas from industrialized nations such as United States, the UK and the western World. However, the net economic gains for these countries are growing, and outsourcing to an offshore destination will...
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