Q. In which year, India faced its first stock market scam?
✅ Correct Answer: (D)
1992
Explanation: After the 1991 liberalization investments in the stock market became a means to make money. With this boom came white-collar crime and strengthened regulations. In April 1992, Indians were introduced to the term ‘stock market scam’ when stockbroker ‘Big Bull’ Harshad Mehta was caught using the government bond market to fund his purchases. It was a scam pegged at 4,025 crore. This has led to formation of SEBI and bring in more rules and regulations.
Explanation by: Yashika
After the 1991 liberalization investments in the stock market became a means to make money. With this boom came white-collar crime and strengthened regulations. In April 1992, Indians were introduced to the term ‘stock market scam’ when stockbroker ‘Big Bull’ Harshad Mehta was caught using the government bond market to fund his purchases. It was a scam pegged at 4,025 crore. This has led to formation of SEBI and bring in more rules and regulations.