Stockmarket scam (2001)
The key figure in the stockmarket scam of 2001, Ketan Parekh, a chartered accountant by training, came from a family of brokers, which helped him create a trading ring of his own. In the period between 1999 and 2001, the stock market in India sprang to life, and following which investment firms, mostly controlled by listed companies, overseas corporate bodies or cooperative banks all were ready to hand money to Parekh which was used by him to rig up stock prices. As a result, scrips like Visualsoft rose from Rs 625 to Rs 8,848 per share and Sonata software from Rs 90 to Rs 2,150.
Parekh's party ended rather abruptly a day after the Union Budget was presented in February 2001. A bear cartel started disrupting Parekh's party by hammering prices of the K-10 stocks , precipitating a payment crisis in Kolkata. Later, as SEBI conducted investigations, it became evident that bank funds were used to rig markets. In March 2011, the mayhem wiped off over Rs 1,15,000 crores from the markets. The chief accused Parekh was arrested in March that year and was in custody for a period of 53 days, and debarred from trading in the Indian stock exchanges till 2017.