The Harshad Mehta scam was a massive accounting scandal that took place in India in the 1990s. It was perpetrated by a businessman named Harshad Mehta, who used a web of shell companies to deceive investors and manipulate the stock market.

Key elements of the scam:

• Fictitious trading: Mehta and his accomplices created fake trading accounts and used them to artificially inflate the prices of certain stocks.
• Securities fraud: They looted billions of rupees from unsuspecting investors through fraudulent schemes, including pump-and-dump and pyramid schemes.
• Bankstering: Mehta bribed bank officials to provide him with loans and preferential treatment.
• Insider trading: He used insider information to make informed bets and manipulate the market.

Impact of the scam:

• Loss of investor confidence: The scam eroded trust in the Indian stock market and led to a decline in investor participation.
• Economic instability: The scam contributed to economic instability in India, as it undermined the confidence of foreign investors.
• Regulatory changes: The scandal led to significant reforms in Indian regulations, including the Securities and Exchange Board of India (SEBI) Act of 1992.

Other notable aspects:

• The scam was the largest in Indian history: It is estimated to have involved losses of up to $2 billion.
• Mehta was eventually convicted: In 2001, he was convicted of securities fraud and other offenses. He was sentenced to 5 years in prison.
• The scam continues to cast a shadow: The Harshad Mehta scam remains a controversial topic in Indian history, and it has been the subject of several books and films.

Here are some additional resources you may find helpful:

• Wikipedia article on the Harshad Mehta scam: en.wikipedia.org/wiki/Harshad_Mehta_scam
• Book about the Harshad Mehta scam: “The Little Master of Indian Fraud” by Sucheta Dalal
• Movie about the Harshad Mehta scam: “Harshad” (1999)

Please note that this is just a brief overview of the Harshad Mehta scam. There is much more to learn about the case. If you are interested in learning more, I recommend reading the sources I have provided above.