माय फर्स्ट प्रेसेंटेशन

i m going to take my first presentation in eiilm . we are divided into ten group of ten member each .
our topic is ketan parekh .
actually how should i have given my presentation ,i m quite worry about it . first of all i should have been friendly with my friend in my group .
here i am going to add some of his introduction .


On 17/12/2004 the Hon’be Chief Metropolitan Magistrate Ahmedabad has issued a Non-bailable warrant against Shri Ketan Vinaychandra Parekh connected with the security scam of 2001 in court case No. 1375/2003.
The personal description of the accused is as follows:
Name : Shri Ketan Vinaychandra Parekh
Age : 42 years
Complexion : Whitish
Height : 5 feet 11
Scar on Forehead, Squarish Jaw Bones, Well built
If the whereabouts of the aforesaid accused person is known kindly inform the nearest police station or contact SCRB,
Shillong at 0364-2224181 or SP, SBI, BS&FC, Mumbai

Ketan Parekh was a Mumbai-based stock broker. He hails from a well-to-do Gujarati family involved in share trading, and Ketan was involved in the shares scam of 2000-2001 on the Indian Stock Market.
At 41, Ketan Parekh heads the IT team at Sharekhan, and also manages to set aside an hour every day to chat with his wife. Rishiraj Verma brings out the man behind the CTO who also spends time praying to God every single day.
The ‘first job’
Meanwhile, in 1990 Parekh crossed the ‘first job’ milestone. He started working with a financial services firm then known as Money Care. “It’s now called Saurashtra Capital Services,” he reminisces. Parekh was happy to get a job in the field that he had studied in. After seven years with the firm, he had gained knowledge not just about the business, but also about the processes pertaining to the firm.
And it was “at Money Care itself” that Parekh had his first brush with IT. He had a lot of options at this company and he chose to work on user implementation, which led him on to IT.

BACKGROUND
Birthdate: January 15, 1965
Place of birth: Mumbai
Family: Father - gold and silver business, mother - homemaker, wife - homemaker, one daughter
Idea of a great vacation: Chilling out at a place where I can eat, sleep, watch TV, talk to my wife and daughter and go to the gym
Likes: I like my job very much. I've got all things in place, my family, my work and my passions
Dislikes: When a person doesn't own up to his responsibilities, I get angry. Earlier, there were lots of dislikes, but time has calmed me down

This CTO knows what he wants; be it his work or any other aspect of his life
Music: Bhajans devoted to Lord Shiva and slow, old music
Film: My likes have changed over time. Earlier I was a Jackie Chan movie buff, but I don’t watch movies any more
Book: Who Moved My Cheese by Spencer Johnson. Currently reading The World is Flat by Thomas L Friedman
Wish the most in life: There are many wishes. I need to be a better human being. I want to help people grow so that they can help me grow in turn. I’d also like to lose a little weight
Miss the most in life: Nothing. I’m happy with what I’m doing
Most memorable holiday: In Mauritius. We were working for 14 to 18 hours a day for nine months. My wife came down and I managed to go home early everyday. Those four days were the best holidays. I’ve been to chaar-dhaam, which are among the four key religious places in India, and this journey made me notice the real beauty of India
Colour I like: Blue
Favourite spot in India: Siddhivinayak temple
Message to fellow IT heads: Today, the world is about mapping business with technology. Technology is not a business driver, it’s an enabler. So focus on letting business drive technology and not the other way round.

Ketan formed a network of brokers from smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and used benami, or share purchases, in the name of poor people living in the shanty towns of Mumbai. Ketan rose'Bold text to fame at the same time as the worldwide dot-com boom (1999-2000) and he relied primarily on the shares of ten companies for his dealings (now known infamously as the K-10 scrips).

Ketan had large borrowings from Global Trust Bank, whose shares he was ramping up so that he could get a good deal at the time of its merger with UTI Bank. He got a Rs 250 crore loan from Global Trust Bank, although Global Trust’s chairman Ramesh Gelli, who was later asked to resign, repeatedly asserted that the amount was less than Rs 100 crore, which was in keeping with the Reserve Bank of India's normal amount. Ketan and his associates obtained another Rs 1,000 crore from the Madhavpura Mercantile Co-operative Bank despite the fact that RBI regulations ruled that the maximum loan a broker could obtain was Rs 15 crore. In addition, Mr Mehta's best friend, Mr Pravin Ruparel was involved with Ketan's Business in 1996.

Ketan's modus operandi was to ramp up the shares of select firms in collusion with promoters. Interestingly, around the time when Ketan started taking long positions in his favorite K-10 scrips, the Securities and Exchange Board of India (SEBI) concluded a 3-year old case against Harshad Mehta, who had colluded with the managements of BPL, Sterlite and Videocon to ramp up their shares.

In Ketan's case, SEBI found prima facie evidence of price rigging in the scrips of Global Trust Bank, Zee Telefilms, HFCL, Lupin Laboratories, Aftek Infosys and Padmini Polymer.

With the prices of selective shares constantly going up due to his rigging, innocent investors who had bought the shares at high prices, thinking the market as genuine. lost heavily. Soon after the discovery of the scam, the prices of these stocks came down to a fraction of the values at which they were bought, causing even banks to lose large sums of money.

At the time, a group of traders known as the Bear Cartel (Shankar Sharma, Anand Rathi, Nirmal Bang) were making money from falling stock prices. Bears sell stocks at high prices and buy back at low prices. Around February end in 2000, this cartel placed sell orders on the K-10 stocks and crushed their inflated prices. All of Ketan's borrowings could not rescue his scrips. The Global Trust Bank and the Madhavpura Cooperative went bust when the money they had lent to Ketan sunk with his K-10 stocks.

The information furnished by the Reserve Bank of India to the Joint Parliamentary Committee (JPC) during the investigation of the scam revealed that financial institutions like Industrial Development Bank of India (IDBI Bank) and Industrial Finance Corporation of India (IFCI) had extended loans of Rs 1,400-odd crore to companies known to be close to Ketan Parekh.The Money Bureau

Rumours of an income tax raid on Ketan Parekh resulted in the stockmarket getting smashed on January 11, 2000. The Sensex fell 222 points. Eventually, it turned out to be an income tax survey that found Rs 92 crore (Rs 920 million) of undisclosed money. Parekh paid an advance tax of Rs 13 crore (Rs 130 million) and all is well; at least for the time being.

This isn't the first time that the Sensex fell on "Parekh rumours". The rumours that have come and gone have included Parekh in a payment crises (this has happened several times), various bulls and bears tussles with Parekh and a rumour that rediff.com columnist Sucheta Dalal was planning to expose a scam in the next day's newspaper. The result is always the same: the market gets smashed, a panic follows, small operators and day traders are forced to exit from their positions (they normally exit from long positions at the slightest hint of a problem), some big operators (who know the truth) buy stocks at bargain prices and subsequently pull the market up rapidly.

And these are not all of the Parekh rumours. The market loves discussing him. The Sensex does get linked to Parekh's acquisitions of a jet (false) and a new car (true). Day traders also monitor Parekh's travel plans and keep a track on his business meetings and holidays abroad. And, of course, Mumbai's 'Party of the Millennium' was Parekh's bash at Mandwa across the city's waterfront.

Show of strength

Who is this man who can cause the Sensex to tumble? Ketan Parekh came into prominence only these last two years, and has since built a solid reputation and substantial wealth. He makes day traders feel ecstasy and paranoia. "KP's in it," is often the only reason to buy a stock. His killings in Zee Telefilms, Pentafour Software and Ranbaxy are legendary.

What he can do to a stock is evident from three examples. He bought into a small software company Aftek Infosys at Rs 30, 40 levels about a year ago and there hasn't been any looking back for the stock since then. It now trades at Rs 2,400 levels. The company is expected to grow at a fantastic pace and the stock has entered many a mutual fund portfolio. But Parekh was there first.

Pentafour was another case. In June 1998, the stock was hammered to half the price in a few days on bad publicity. Parekh entered and pulled it up, also selling the idea to most fund managers. The company performed well thereafter.

Ranbaxy was different. KP's reputation was strengthened further with this stock. It was a unique case as the participation of smaller traders/investors was high. The company was changing and was on the last leg of developing a new drug delivery system in mid-1999. The stock had risen from Rs 500 to Rs 750 and declined back to Rs 550 from April to June 1999. This was one story where every BSE liftman and panwallah around Dalal Street made money as the stock scaled a high of Rs 1,264.

After the Ranbaxy killing, the bull trained his guns on Global Tele-Systems and Himachal Futuristic. Both stocks are up five times since their August 1999 levels. By now, Parekh had leader status and the crowd bought shares in which he was interested.

Who is KP?

India's two major business newspapers call him the Pentafour Bull and the One Man Army in their market gossip columns. The market, with its fancy to cut redundancy, calls him KP or associates him with his firm NH Securities.

Not much is known about the man. But a recluse he isn't. He meets people, including the press. But there is one cardinal rule: No pictures, please. We suppose he takes the Wall Street wisdom too seriously -- get your picture on the cover of BusinessWeek or Fortune and the end is near. And Ketan Parekh obviously doesn't want to retire early.

This chartered accountant by training is a down-to-earth man with an extremely sharp mind. Ask him how the market is and don't be surprised by a J P Morgan-type answer, "It will fluctuate." If you know him well, he will give you a tip too. If you are strong-hearted, you buy the share and forget it for a while. You will see some really wild swings, but in the end you will make big money.

His market style and personality are often compared to Big Bull Harshad Mehta. But there are some stark differences.

First, Mehta was a poor man's son. Ketan isn't. His family has been into stockbroking for some time, and he is related to many big brokers.

Second, Harshad operated in a closed-but-liberalising market and with other people's money (as it transpired later) as the last recourse. Parekh works in a more mature market with electronic trading, higher volumes and a stronger institutional environment.

Stories have to be created and sold aggressively to institutional investors for everybody to make money, which Parekh has done successfully. Unlike Mehta's aggressive publicity campaigns, Parekh is silent.

What are his stocks?

He picks out-of-favour stocks that are expected to grow rapidly. These are also companies that investors think lowly of or have doubts about the business, accounting standards and management. He was the first to see the software boom spreading over to second-rung software companies in 1998. His first killing came in Pentafour which had been consciously avoided by most institutional investors. Parekh came and sold them a solid growth story and the rest is history.

Ranbaxy had moved in a narrow trading range for five years. There were pending warrant conversions and institutional investors feared that the management came and sold at higher levels. Parekh spotted the change in management and the company's new drug discovery system becoming successful. He sold this story again and reaped a rich harvest.

Global, Himachal and DSQ Software will not fit in the universe of an institutional investor, but for Parekh's presence. The country's largest mutual fund, UTI's Unit Scheme-64, had Himachal Futuristic (1.48 per cent of the portfolio), Ranbaxy (1.39 per cent), Pentafour (1.35 per cent) and Global Tele-Systems (1.05 per cent) on September 30, 1999.

Parekh is also one of the few brokers who understands the power of online trading. Most operators work through a large team of trusted dealers and jobbers. (Word should not spread that he is buying or he would not be able to acquire enough shares.) An operator would also need to indulge in buy and sell orders so that his dealers remain quite confused on whether he is in or getting out.

Every big broker has enough enemies. These are the people he has crossed or the people who crossed him on his way to the top. Alleges one of his adversaries, "Most of these rumours are spread by the KP gang so that they get to smash prices, enter at lower levels and then pull the market up."

Does he always succeed? There are two ways of judging this. One is the level that a stock reaches and then declines. BPL is a good example. The stock went to Rs 600 levels; it is currently at Rs 270 levels. That has happened in many companies. The other is of a stock just not moving up after he buys it -- that happened in MTNL some time ago when it would find some new seller to stanch the stock's rise. This is an aberration when you compare stocks like Aftek, Himachal, Global, Zee and Pentafour which are on a continuous upswing and an investor getting in at any point will be in the money.

KP travels a lot and meets company managements regularly. He likes buying a substantial stake in relatively smaller companies by a private placement (like in Aftek) and then waits for other players to catch his fancy. He has also bought a stake in many unlisted companies. As is the way of the world today, he is building a nice portfolio of Internet start-ups too.

He is big for the market and getting bigger. But investors and speculators are not complaining. Nor are institutional investors and the government unhappy. The current level of the Sensex and the hope in every eye near an online terminal of ten-baggers are this man's doing, at least to some extent.



THE CRASH THAT SHOOK THE NATION
The 176-point[1] Sensex[2] crash on March 1, 2001 came as a major shock for the Government of India, the stock markets and the investors alike. More so, as the Union budget tabled a day earlier had been acclaimed for its growth initiatives and had prompted a 177-point increase in the Sensex. This sudden crash in the stock markets prompted the Securities Exchange Board of India (SEBI) to launch immediate investigations into the volatility of stock markets. SEBI also decided to inspect the books of several brokers who were suspected of triggering the crash.

Meanwhile, the Reserve Bank of India (RBI) ordered some banks to furnish data related to their capital market exposure. This was after media reports appeared regarding a private sector bank[3] having exceeded its prudential norms of capital exposure, thereby contributing to the stock market volatility. The panic run on the bourses continued and the Bombay Stock Exchange (BSE) President Anand Rathi's (Rathi) resignation added to the downfall. Rathi had to resign following allegations that he had used some privileged information, which contributed to the crash.The scam shook the investor's confidence in the overall functioning of the stock markets. By the end of March 2001, at least eight people were reported to have committed suicide and hundreds of investors were driven to the brink of bankruptcy.


The scam opened up the debate over banks funding capital market operations and lending funds against collateral security. It also raised questions about the validity of dual control of co-operative banks[4] . (Analysts pointed out that RBI was inspecting the accounts once in two years, which created ample scope for violation of rules.)

The first arrest in the scam was of the noted bull[5], Ketan Parekh (KP), on March 30, 2001, by the Central Bureau of Investigation (CBI). Soon, reports abounded as to how KP had single handedly caused one of the biggest scams in the history of Indian financial markets. He was charged with defrauding Bank of India (BoI) of about $30 million among other charges.

KP's arrest was followed by yet another panic run on the bourses and the Sensex fell by 147 points. By this time, the scam had become the 'talk of the nation,' with intensive media coverage and unprecedented public outcry.