1992 Indian stock market scam

The 1992 Indian stock market scam was a market manipulation carried out by Harshad Mehta with other bankers and politicians on the Bombay Stock Exchange. The scam caused significant disruption to the stock market of India, defrauding investors of over $15 million.

The techniques used by Mehta involved having corrupt officials sign fake cheques, abusing market loopholes, and using fabrication to drive stock prices up to 40 times their original value. Stock traders making good returns as a result of the scam were able to fraudulently obtain unsecured loans from banks. When the scam was discovered in April 1992, India's stock market crashed, and the same banks suddenly found themselves holding millions of Indian rupees (INR) in useless debt.

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