SCAM 1992 Web Series - Watch & Download All 10 Episodes For Free Online

Watch SCAM 1992 – The Harshad Mehta Story online for free, which is a best crime drama and biographic web series directed by Mr. Hanshal Mehta based on India's biggest financial scam and currently streaming online on SONY LIV with 10 episodes based on the lifestyle of Mr. Harshad Mehta.

Watch online The scam 1992 having 10 episodes shows the story of India's biggest financial scam by Mr. Harshad Shantilal Mehta of more than 16000 crores in stock market and money market. It has clear views of lifestyle of Harshad Mehta that how he earns such a big amount by scam and at a time he was the big bull of the BSE. He was being known as "THE BACHCHAN OF BSE" for his success in the market.

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‘Scam’ is about the major scandals that shook India and are remembered as some of the most notorious crimes of the country. Set in the 1980s and 90’s Bombay, Scam 1992

Harshad Mehta had strong relations with the political parties, heads of the chambers, Govt bank, brokers, foreign banks & even with the present prime minister of India at the era P. V. Narasimha Rao.

About Mr. Harshad Shantilal Mehta : He was born on 29 July 1954 at paneli moti, Rajkot districts, In a gujarati family and his lifestyle was quite same as a ride of roller casting.

Background of the 1992 security fraud that is shown in the SCAM 1992 Web Series

Stamp paper fraud

Up to the early 90's banks in India were not allowed to invest in the equity markets. However, they were expected to post profits and to retain a certain ratio (threshold) of their assets in government fixed interest bonds. Mehta cleverly squeezed capital out of the banking system to address this requirement of banks and pumped this money into the share market. He also promised the banks higher rates of interest, while asking them to transfer the money into his personal account, under the guise of buying securities for them from other banks. At that time, a bank had to go through a broker to buy securities and forward bonds from other banks. Mehta used this money temporarily in his account to buy shares, thus hiking up demand of certain shares (of good established companies like ACC, Sterlite Industries and Videocon) dramatically, selling them off, passing on a part of the proceeds to the bank and kept the rest for himself. This resulted in stocks like ACC (which was trading in 1991 for ₹200/share) to nearly ₹9,000 in just 3 months.

Bank receipt fraud

Another instrument used in a big way was the bank receipt. In a ready forward deal, securities were not moved back and forth in actuality. Instead, the borrower, i.e. the seller of securities, gave the buyer of the securities a BR. The BR serves as a receipt from the selling bank, and also promises that the buyer will receive the securities they have paid for at the end of the term.
Having figured this out, Mehta needed banks, which could issue fake BRs, or BRs not backed by any government securities.
Once these fake BRs were issued, they were passed on to other banks and the banks in turn gave money to Mehta, plainly assuming that they were lending against government securities when this was not really the case.[12] He took the price of ACC from ₹200 to ₹9,000. That was an increase of 4,400%.The stock markets were overheated and the bulls were on a mad run. Since he had to book profits in the end, the day he sold was the day when the markets crashed.

Outbreak of 1992 securities fraud

On 23 April 1992, journalist Sucheta Dalal exposed Mehta's illegal methods in a column in The Times of India. Mehta was dipping illegally into the banking system to finance his buying.
A typical ready forward deal involved two banks brought together by a broker in lieu of a commission. The broker handles neither the cash nor the securities, though that wasn't the case in the lead-up to the fraud. In this settlement process, deliveries of securities and payments were made through the broker. That is, the seller handed over the securities to the broker, who passed them to the buyer, while the buyer gave the cheque to the broker, who then made the payment to the seller. In this settlement process, the buyer and the seller might not even know whom they had traded with, either being known only to the broker. This the brokers could manage primarily because by now they had become market makers and had started trading on their account. To keep up a semblance of legality, they pretended to be undertaking the transactions on behalf of a bank.

Mehta used forged BR's to gain unsecured loans, and used several small banks to issue BRs on demand. Once these fake BRs were issued, they were passed on to other banks and the banks in turn gave money to Mehta, assuming that they were lending against government securities when this was not really the case. This money was used to drive up the prices of stocks in the stock market. When time came to return the money, the shares were sold for a profit and the BR was retired. The money due to the bank was returned.
This went on as long as the stock prices kept going up, and no one had a clue about Mehta's operations. Once the fraud was exposed, though, a lot of banks were left holding BRs which did not have any value – the banking system had been swindled of a whopping ₹4,000 crore (equivalent to ₹250 billion or US$3.5 billion in 2019). He knew that he would be accused if people came to know about his involvement in issuing cheques to Mehta. Subsequently, it transpired that Citibank, brokers like Pallav Sheth and Ajay Kayan, industrialists like Aditya Birla, Hemendra Kothari, a number of politicians, and the RBI Governor S.Venkitaramanan all had played a role in allowing or facilitating Mehta's rigging of the share market.

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