Harshad Mehta


Harshad Mehta, often referred to as the “Big Bull,” was a prominent figure in the Indian stock market during the 1990s. His meteoric rise to fame and subsequent downfall captivated the nation, exposing the flaws in India’s financial system. Mehta’s story is a cautionary tale that highlights the dangers of unchecked ambition and the consequences of manipulating the stock market for personal gain.

Early Life and Career:

Born on July 29, 1954, in a middle-class Gujarati family, Harshad Mehta hailed from a modest background. He started his career as a small-time broker in the Bombay Stock Exchange (BSE) and quickly rose through the ranks. Mehta’s exceptional intelligence and sharp instincts earned him a reputation as a financial genius, leading to his rapid ascent in the world of stockbroking.

The Rise to Fame:

Mehta’s groundbreaking moment came in 1991 when he orchestrated one of the most audacious financial scams in Indian history, popularly known as the “Harshad Mehta scam” or the “Securities Scam of 1992.” Exploiting loopholes in the banking system, Mehta manipulated the stock market to his advantage.

Using a technique called “pump and dump,” Mehta single-handedly inflated the prices of select stocks, creating an artificial bull run that saw the Bombay Stock Exchange’s benchmark index, the Sensex, soar to unprecedented heights. Mehta’s charismatic personality and ability to sway influential individuals, including bankers and politicians, further bolstered his reputation and power.

The Downfall:

The extravagant lifestyle and larger-than-life persona of Harshad Mehta eventually attracted the attention of journalist Sucheta Dalal, who started investigating his financial dealings. Her exposé, published in The Times of India, unveiled the intricate web of deceit woven by Mehta and his associates.

The scam involved the unauthorized withdrawal of funds from the banking system using fake bank receipts, subsequently invested in the stock market to drive up prices. However, as the scale of Mehta’s fraud became apparent, panic gripped the market, leading to a massive crash and exposing the fragility of India’s financial infrastructure.

Legal Battles and Legacy:

Following the exposure of the scam, Harshad Mehta faced multiple criminal charges and investigations. In 1992, he was arrested and charged with numerous financial crimes, including cheating, forgery, and conspiracy. The legal battle that ensued was protracted and complicated, with Mehta fighting to defend his actions.

While Mehta was convicted in some cases, he also managed to secure temporary relief through legal loopholes and delays. However, his image as a financial genius and national icon was tarnished irreparably. He spent several years fighting his legal battles, facing a significant decline in fortune and health.

Mehta’s legacy continues to be debated, with some viewing him as a symbol of unchecked greed and manipulation, while others see him as a victim of a flawed system. His story highlighted the urgent need for regulatory reforms and stricter financial oversight in India.


Harshad Mehta’s rise and fall represent a cautionary tale for the financial world. His exploits revealed glaring loopholes in India’s banking and regulatory system, leading to significant reforms in the country’s financial sector. Mehta’s audacious actions and subsequent downfall serve as a reminder that even the most successful and influential individuals are not immune to the consequences of their actions.

The “Big Bull” left an indelible mark on India’s financial history, forever altering the way investors and regulators perceive the stock market. While his actions may have caused immense harm, they also spurred necessary changes, emphasizing the importance of transparency, accountability, and integrity in the financial industry.

Harshad Mehta’s story serves as a reminder that shortcuts and manipulation may offer temporary gains, but they ultimately lead to severe consequences. It is crucial for individuals and institutions to prioritize ethical practices and work towards a sustainable and transparent financial ecosystem.

As India’s financial landscape continues to evolve, the lessons learned from the Harshad Mehta scam remain relevant. Regulators, policymakers, and market participants must remain vigilant in their efforts to prevent such fraudulent activities and safeguard the integrity of the financial markets.

Ultimately, the Harshad Mehta saga stands as a cautionary tale, reminding us of the importance of integrity, accountability, and the need for robust regulatory frameworks in the pursuit of financial prosperity.

Frequently Asked Questions about Harshad Mehta

  1. Who is Harshad Mehta?
    Harshad Mehta, also known as the “Big Bull,” was a prominent figure in the Indian stock market during the 1990s. He orchestrated the Securities Scam of 1992, one of the largest financial scams in Indian history.
  2. What was the Securities Scam of 1992?
    The Securities Scam of 1992 refers to the financial fraud orchestrated by Harshad Mehta. He manipulated the stock market by exploiting loopholes in the banking system, leading to an artificial bull run and subsequent crash.
  3. How did Harshad Mehta manipulate the stock market?
    Mehta employed a technique called “pump and dump.” He manipulated stock prices by purchasing large quantities of select stocks, inflating their prices. Once the prices soared, he sold the stocks, making significant profits.
  4. How did the scam come to light?
    Journalist Sucheta Dalal, while investigating Mehta’s financial dealings, published an exposé in The Times of India. Her investigation revealed the fraudulent activities, leading to the exposure of the scam.
  5. What were the consequences of the scam?
    The scam led to a significant crash in the stock market, causing financial losses for many investors. It also exposed the weaknesses in India’s banking and regulatory systems, leading to subsequent reforms.
  6. What charges did Harshad Mehta face?
    Mehta faced multiple criminal charges, including cheating, forgery, and conspiracy. He was arrested in 1992 and spent several years fighting legal battles.
  7. What was Harshad Mehta’s legacy?
    Harshad Mehta’s legacy is one of controversy and debate. Some view him as a symbol of unchecked greed and manipulation, while others see him as a victim of a flawed system. His actions led to reforms and stricter regulations in India’s financial sector.
  8. What lessons can be learned from the Harshad Mehta scam?
    The scam highlighted the importance of transparency, accountability, and ethical practices in the financial industry. It served as a reminder that shortcuts and manipulation have severe consequences and that regulatory oversight is crucial for maintaining market integrity.
  9. Did the Harshad Mehta scam lead to any reforms?
    Yes, the scam prompted significant reforms in India’s banking and regulatory systems. It led to the establishment of the Securities and Exchange Board of India (SEBI) as the primary regulator for the securities market. Reforms aimed to strengthen investor protection and improve transparency in the financial sector.
  10. How is Harshad Mehta remembered today?
    Harshad Mehta’s story is often discussed in the context of financial fraud and the need for regulatory reforms. His rise and fall serve as a cautionary tale, reminding individuals and institutions of the importance of ethical conduct and responsible financial practices.

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