The securities scam of 1991-92 refers to a diversion of bank funds worth Rs 3,500 crore to a group of stockbrokers, led by Harshad Mehta. These funds were then put into the stock market selectively, causing it to surge to over 4,500 points. It was first exposed by veteran journalist Sucheta Dalal in April 1992.
Mehta’s favourite stocks included Associated Cement Company (ACC), Apollo Tyres, Reliance, Hero Honda, Tata Iron and Steel Co (TISCO), BPL, Sterlite, and Videocon, to name a few. The ACC, India’s foremost cement firm, was Mehta’s favourite. He pumped money into its shares so aggressively that its stocks rose from Rs 200 a share to Rs 9,000 a share in three years… a 4,400 percent rise!
He had the touch of Midas: everything he touched became gold and thousands of gullible investors followed his lead. He was called ‘the Amitabh Bachchan of the stock market’ and ‘the…