Ketan Parekh: House, Family, Net Worth, Properties, Scam

 Introduction

The human intellect is capable of fantastic depth, and those who knew Ketan Parekh remember him as a guy who created his path with his bold vision and drives to think beyond the box. Even when it appeared unattainable, he pictured a family home—he saw the dazzling ocean while others were caught off guard by a filthy water tank. He never did what was expected of him; instead, he envisioned the impossible and made it a reality. Veteran market participants who were a part of the stock market in their early years confess that the perception of the stock market was not particularly positive, and they would be deceiving themselves if they identified themselves as stock market brokers. Few people can transform adversity into a great success. Ketan Parekh was one of those exceptional individuals.

Who was Ketan Parekh

Ketan Parekh, widely known as the ITC bull, began his career in the early 1980s by assisting his father and uncles at their family-run firm "Narbheram Harakchand Securities," which his grandfather founded in the pre-independence era. While working, he prepared for Chartered Accountancy, one of India's most rigorous tests, which he passed with flying colors in 1985. He was a hardworking student who took his studies seriously. He was a trainee at Harshad Mehta's company GrowMore. Ketan, who possesses an eidetic memory and a natural talent for numbers and mathematics, might start working in the financial industry at a young age.

Ketan Parekh and his Family

Ketan Parekh was born in 1963 into a well-to-do upper-middle-class family of Chartered Accountants and stockbrokers. Vinaychandra N Parekh, his father, exposed him to the volatile stock market world. He began his work at his grandfather's established stock brokerage company after becoming a CA. Mamta Parekh is his wife's name, and the pair has two children, Venessa and Krisha.

Ketan Parekh and his Millenium Bash

Although Ketan gained a vivid image after throwing a grand scale party in 2000, known as the millennium bash, he was a shy and soft-spoken stockbroker, who kept a low profile, lived a simple life, and kept his distance from media interactions before the K10 scam came to light. However, things changed during his renowned Millennium Bash (New Year's Eve, 2000) at his beach villa in Mandwa, off the coast of Bombay. The celebration was attended by affluent businesspeople, investment managers, and Bollywood's glitterati. Many tabloids ran front-page stories on the gathering. Following that, Ketan purchased a fleet of premium vehicles, including a Cadillac and a Lexus. He was respected by many prominent people, including Bollywood celebrities like Amitabh Bachchan and worldwide tycoons like Kerry Packer. According to reports, Ketan grew close to Mr. Amitabh after transforming Amitabh Bachchan Corporation Ltd from a loss-making venture to a profitable one. Later, Mr. Parekh began to appear on the front pages of business journals, indicating that Ketan was creating a joint venture with Indian tycoon Vinay Maloo and Australian billionaire Kerry Packer.

About the Ketan Parekh Scam

Ketan Parekh's initial action was to purchase substantial assets from promoters at steep discounts and shift his focus to institutional investors. He was optimistic about the stock market. He required three things to build the market: stocks, the stock exchange, and money. The Bombay Stock Exchange (BSE) increased security and fraud detection following the 1992 Securities Scam. As a result, Ketan Parekh traded on the Kolkata Stock Exchange, which had lax and considerable restrictions. Ketan Parekh selects equities based on four primary criteria:

• The volume of the firm must be modest.

• The company's future must be promising.

• The market capitalization of a corporation must be fair.

Following the dot-com boom, his stock portfolio focused mainly on the technology, communication, and entertainment (ICE) industries. He referred to them as 'K-10' stocks. Global Telesystems, Himachal Futuristic Communications Ltd, Zee Telefilms, and his wallet provided funding.

Institutional investors also contributed money in the form of loans and pay orders through mutual funds, hedge funds, insurance companies, P/E funds, and banks, including Global Trust Bank and Madhavpura Mercantile Cooperative Bank. He purchased Madhavpura Mercantile Cooperative Bank shares to sway the bank's lending decision in his favor. At the time, the RBI permitted dealers to get loans of up to 15 crores.

In March 2001, MMCB issued Pay Orders totaling Rs. 137 crores to Ketan's companies: 65 crores to Classical Share and Stockbrokers, 20 crores to Panther Investrade, and 52 crores to Panther Fincap, all of which were discounted by Bank of India, and all of these companies also had accounts with Bank of India. On the other hand, the Reserve Bank of India intervened in 2001 and returned the bounced pay orders to the Bank of India. Due to a lack of money, MMCB could not clear the payments. The RBI labeled MMCB a defaulter, and BOI suffered a loss of Rs. 137 crores.

Ketan Parekh only paid back Rs. 7 crores, leading to the filing of an Rs. 130 crore fraud case against him. The entire scheme was discovered once the Central Bureau of Investigation captured Ketan. For his firm, he employed two strategies: the pump-and-dump strategy and circular trading.

 

The reality of the infamous Ketan Parekh Scam

Ketan has never stepped out to clarify his side of the tale, which has resulted in countless inaccurate statements and assumptions. But the rest of the world needs to know the TRUTH about him as a person, trader, and investor. In the trading market, the key motivators are fear and greed. Some people invest in stocks to increase their wealth and gain tangible rewards. Furthermore, some people are afraid of losing money and want to get rid of underperforming stores, i.e., sell the stock they believe will result in a loss. Simultaneously, some risk-takers have substantial evidence to back them up, and a systematic approach may be pretty successful. Ketan was an accomplished trader candid about his losses in the 1990s. He promptly recognized his mistakes and made amends to all of his creditors. Ketan has promised and delivered the right thing for years because of his firm belief in the Indian judicial system.

Untold Story everyone needs to know about Ketan Parekh.

The bravery of facing hardship after wrongdoing is a feat not much recognized by society. Ketan has valiantly handled all of his claims and dealt with all of the lawsuits filed against him with great patience. He has carefully followed court decisions and has worked to remedy any weaknesses in the Indian legal system. Ketan has paid off all of his obligations and faced legal consequences, which he accepted. 

He served the necessary jail sentence as directed by the courts. Sadly, the media singled out Ketan for the scam and cornered him alone. At the same time, there isn't enough published about the politicians, bankers, and others who participated in the hoax and got a piece of the cake. It was all transformed into a one-person scam, which is impossible.

Time to change preconceptions towards Ketan Parekh

People haven't bothered to look into the claims or Ketan's incarceration; instead always connected with a bad image. Ketan should unquestionably be given another chance to clear his name and tell the world what he has gone through, how he has survived it all, and, most importantly, what he has done thus far (especially concerning the court cases filed against him). Everyone must comprehend how Ketan followed the rules and came out clean. Worse has happened in India, with people escaping with enormous quantities of money that belonged to the country. On the other hand, Ketan paid off all of his obligations and faced legal consequences, which he accepted. 

His integrity and adherence to the law must be emphasized.

He has been meticulously following court judgments and working to correct any flaws in the Indian legal system. Ketan, being patriotic, decided long ago that rather than fleeing the nation, he would confront all of the charges against him and has been fighting to make things right for over two decades. 

Summary

However, this event of greed and repentance has opened the eyes of our regulatory bodies and helped them bring reforms to the loopholes in corporate laws. Ketan Parekh created his fortune for himself and paid for his mistakes. He has lived a life many people desire by having a bungalow, fancy cars, and a settled family. He is an expert who should be consulted to grasp the faults in the trading systems, which have higher chances when the number of Demat accounts reaches ten crores in August 2022. To summarise, when a name is connected with fraud, whether right or wrong, it is glamorized and made the talk of the town; nevertheless, when the same individual attempts to atone for his mistakes, it is rejected. As a civilization, we must alter our focus to perceive REALITY.