Professional Documents
Culture Documents
For
The Fin 4um
First Appearance
O April, 1992 - the first press report appeared
indicating that there was a shortfall in the
Government Securities held by the State Bank of
India.
O the stock prices dropped by over 40%, wiping out market value to
the tune of Rs. 100,000 crores.
O Separation of Functions:
dealing, custody and
accounting .
O Counterparty Limits:
A Assessing the
creditworthiness of the
borrower and assigning
him a "credit limit" up to
which the bank is
prepared to lend.
Other effects
O Window Dressing Bank Balance Sheets:
A would improve the bottom line (profit) for the
bank, the loss suffered by the bank in transaction
A would not be reflected in its profit and loss
account at all.
Responses
O Over-regulation of our markets
O Understanding that artificial insulation of
closely related markets from each other is
counterproductive in the long run
Harshad Mehta
O The big bull- the pied piper.
O was accused of having
diverted funds from the MUL
O Attempted come back of ͚97.
O Died on December 31, 2001
- still a mystery.
O Bear Cartel His favorite stocks
A Hiten Dalal, included
A A.D.Narottam * ACC
* Apollo Tyres
* Reliance
* TISCO
* BPL
* Sterlite
* Videocon.