Financial System Security: Harshad Mehta and the Billion-Dollar Scam

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The case is about the banking system and the financial markets scam with Harshad Mehta as the chief architect. Mehta was able to successfully exploit the deficiencies in the microstructure of the Indian financial system to siphon money from the banking system to the financial markets. With this money he manipulated the Indian capital markets causing a phenomenal increase in stock prices. When the scam was exposed, the capital markets crashed and thousands of investors lost their life savings; it also impacted several domestic and foreign banks operating in India.
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