what is Harshad Mehta scam and how did Harshad Mehta do scam in indian stock market
Explanation of Harshad Mehta scam। Big Bull of stock market।
Harshad used the RF or Ready Forward method in this scam.
why it is considered as one of the biggest frauds in stock market in india?
that are called goverment securities such as goverment bond. With the help of this bonds or securities goverment collects money from investors.
In return of goverment gives a fixed return to all investors. And it is compulsory for all banks to invest minimum certain amount in this securities.
When any bank needs money the bank gives the security(bond) to another bank and takes a short term loan from the another bank.
After the contract time period the bank takes the goverment bond from the another bank paying the capital with fixed contract interest.