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Adani, Ambani & the Dark Side of Share Market | Ft. Abhishek Kar | The Arun Pandit Show EP 8

Astro Arun Pandit・106 minutes read

The text discusses the history of the stock market, focusing on key events, figures, and manipulations that influenced market dynamics and crashes, such as The Great Depression and Harshad Mehta's schemes. It also delves into the evolution of brokerage practices, unethical behaviors, and the consequences of financial manipulation, highlighting the risks involved in such practices.

Insights

The stock market history is intertwined with significant events like the Great Depression, where government policies led to a massive crash and prolonged economic hardship.
Brokers in the stock market manipulated prices using insider information and unethical practices, leading to significant profits and consequences.
The story delves into historical scams like the Haridas Mundra scam, emphasizing the need for regulatory bodies to counter fraudulent activities.
The impact of key figures like Harshad Mehta on the stock market, with their involvement in scams and legal battles leading to fame, notoriety, and market crashes.

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Recent questions

What caused the Great Depression?
The Great Depression was primarily caused by the government's monetary policies that led to a massive crash in the stock market and a prolonged period of economic hardship.
Who was Harshad Mehta?
Harshad Mehta was a significant figure in the stock market known for his involvement in a limited company that faced liquidation, impacting the market with his schemes and manipulations.
What is a bank run?
A bank run is when people rush to withdraw their deposits from a bank due to fears of its collapse, a significant factor during the Great Depression and other financial crises.
How did brokers manipulate stock prices?
Brokers manipulated stock prices by acquiring insider information, influencing market trends, and engaging in unethical practices to make significant profits.
What led to the collapse of major financial institutions in 2008?
The collapse of major financial institutions in 2008 was triggered by risky investments, bundled and sold as safe investments, promoted by investment banks and rating agencies, leading to a global financial crisis.

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Summary

00:00

"Stock Market History: Crashes, Schemes, Evolution"

The main theme of the podcast is the history of the stock market, focusing on the biggest crash in market history, The Great Depression.
The person involved in trading during that time was called a jobber, similar to what intraday traders are referred to as today.
Harshad Mehta, a significant figure in the stock market, had a major impact on the market, particularly with his involvement in a limited company that faced liquidation.
Harshad Mehta's life was marked by significant events, including his death on either the 4th, 1st, or 22nd of a month, with his schemes and impact on the market being notable.
The stock market history includes instances where individuals who tried to play god or manipulate the market faced severe consequences, such as Harshad Mehta and Nirav Modi.
The stock market's history is intertwined with significant events like the Great Depression, where the government's monetary policies led to a massive crash and a prolonged period of economic hardship.
The concept of a bank run, where people rush to withdraw their deposits from a bank due to fears of its collapse, was a significant factor during the Great Depression.
The stock market's history includes instances of bubbles and crashes, such as the Tulip Mania, where the demand for tulips led to exorbitant prices before crashing.
The stock market has seen various crises and rallies, including the recent COVID-19 crisis, where significant fluctuations in the market occurred.
The evolution of the stock market involved changes in brokerage practices, with brokers gaining significant power and influence, particularly in the 1980s and early 2000s.

12:32

Unethical brokers manipulate stock market for profit.

Brokers used to buy stocks at the highest price of the day and sell at the lowest, making significant profits.
The story highlights the unethical practices of brokers, even when aware of fraudulent activities.
Brokers manipulated stock prices by acquiring insider information and influencing market trends.
The text delves into historical scams, such as the Haridas Mundra scam, which led to the establishment of regulatory bodies.
Foreign institutions exploited India's market due to lax regulations, leading to corrupt practices and unnecessary acquisitions.
The narrative shifts to a significant scam in the late 1980s involving a prominent figure with multiple licenses in stockbroking.
The text introduces RKD, who engaged in short selling and made substantial financial gains through strategic trading.
RKD's mentor, Manu Bhai, facilitated his rise in the stock market, despite unethical practices and manipulation.
The story emphasizes the power dynamics and influence of key figures in the stock market during that era.
The text concludes with a focus on the intricate financial dealings and manipulations prevalent in the stock market, highlighting the risks and consequences of such practices.

25:02

Stock manipulation and rise of Harshad Mehta.

Stock is pegged at 100% weak if 100 people do XY root.
Money was transferred to Manu Bhai by hand, to be given to the group later.
Stock value changed from 00 to 50, with EMI payments required.
Subscription by 500 people can increase share worth from ₹1 to 20.
Promoter or CO moving fast? Sell the company to end it.
Dhiru Bhai's company is floating on shares worth Rs.
Dhiru Bhai transitioned from textiles to petrochemicals.
21 lakh shares were floated in the market, leading to market ruckus.
Harshad Mehta challenged Marwari and Gujarati dominance in BSC.
Harshad Mehta's portfolio grew 80 times, with quality stocks like Ta Motors and ACC.

37:28

"Harshad Mehta: Predictions, Scams, and Impact"

Meeting with a German counselor led to predictions about winning an election and a potential term length of 5 years.
The Indian politician sought out Panditji for advice and used significant resources to meet him.
Predictions from Panditji led to subsequent meetings and discussions about meeting again.
Harshad Mehta's involvement in scams and legal issues, leading to his fame and notoriety.
Exploitation of loopholes in the system and financial gains, sparking debates on right and wrong.
Mention of Rs 500 crore in a series, highlighting financial intricacies and returns.
Harshad Mehta's tax issues and legal battles, including a detailed letter to the income tax department.
The impact of Harshad Mehta's actions on the stock market and the subsequent crash of the dot-com bubble in the US.
Discussion on mutual funds and sector-specific investments during the 1995-1999 period.
Instances of fraudulent practices in Indian companies, like the sewage treatment company, and the need for regulatory oversight.

49:33

KP's Rise and Fall in Stock Market

If Part 2 is done based on likes, 15-20 Hajj will be done.
KP learned not to show off from Guruji, who parked a Lexus worth 45 lakhs in front of SBI.
Harshad ji's last tax of Rs 24 crores caused a stir, leading to huge holdings.
KP learned to discreetly handle institutional broking from his father.
KP dealt with NH Securities, learning both institutional and retail angles.
KP focused on two or three common elements to run a successful business in the country.
KP's theme was Technology and Communication, predicting future trends.
KP's collaboration with Kolkata Stock Exchange led to significant trading.
KP's downfall was triggered by a series of mistakes, including a significant fall in the market.
KP's involvement in a scandal led to his downfall, similar to Harshad Mehta's fate.

01:01:57

Financial Crisis: Causes, Impact, and Lessons Learned

In 1920, the government aimed to save the same regulators who were in power at the time, but their focus on increasing the money supply led to a crash due to reduced interest rates.
Loans were given to individuals who couldn't afford them, allowing them to buy expensive properties, leading to a financial bubble.
The concept of Collateralized Debt Obligations (CDO) emerged, where risky loans were bundled and sold as safe investments, similar to mixing good and bad potatoes for sale.
Investment banks and rating agencies played a role in promoting these risky investments, leading to a market collapse.
The real estate market in India also experienced a bubble, with properties being bought at inflated prices that couldn't be sustained.
The collapse of major financial institutions like Bear Stearns and Lehman Brothers in 2008 triggered a global financial crisis.
The government intervened to bail out these failing institutions to prevent a domino effect on the economy.
The crisis had a significant impact on the stock market, with lower circuits being triggered multiple times, causing panic among investors.
The story of the financial crisis was depicted in the movie "Big Short," highlighting the patterns of financial disasters caused by risky investments.
In India, a similar scenario was seen with the Satyam scandal, where the company's founder manipulated financial records to inflate profits and mislead investors.

01:13:37

Financial Scandals and Business Intrigue

Shareholder meeting excitement due to anticipated positive quarter results
Mention of a person named Satyam who is expected to charge money
Satyam's confession about fake profits and receipts in the company
Reference to a significant increase in share price within three weeks
Suggestion to invest in mutual funds in India
Historical references to financial scandals involving Harshad Mehta and Kingfisher
Involvement of Vijay Mallya in financial troubles and legal issues
Details about a birthday party in Goa with Shakira hosting
Subrata Roy's case involving Sahara and his legal battles
Discussion on the concept of God controlling the world through gold, oil, and diamonds
Connection between various financial scams and individuals like Nirav Modi and Harshad Mehta
Importance of understanding capital-intensive industries and political connections in financial matters
Emphasis on the desire for immortality through fame and wealth in the business world
Mention of the "matrix" concept in social media and its influence on perceptions and reality in business dealings.

01:25:53

"Influential Figures and Market Manipulation Revealed"

Sachin Tendulkar, Salman Khan, and Dhirubhai Ambani are successful despite limited formal education.
Hedge funds, led by George Soros, have significant influence in the stock market.
George Soros famously made a billion-dollar profit by betting against the British pound in 1992.
Soros is known as a currency raider and has been involved in political activities globally.
A secretive elite club, possibly the Illuminati, meets every 20 years with an expensive membership fee.
Power brokers in Delhi facilitate multi-million dollar property deals for the wealthy.
The stock market is controlled by three major entities, including operators, institutions, and politicians.
The 2020 market crash was allegedly influenced by calls from insurance companies and banks.
India's economy is projected to reach $10 trillion in the next 8 years, driven by data accessibility and innovation.
India's demographic dividend, pharma industry growth, and reduced tax evasion contribute to economic optimism.

01:39:54

"Legal resources, black market demand, investment insights"

Legal resources are available, with a salary of Rs 6000 expected in a year or two. Students are seen buying items worth Rs. 200 and Rs. 100, indicating a strong demand for black market sales.
The company Cerelac continues to produce products for children up to six months old, with a focus on quality. Asian Paints is highlighted as a long-term investment, offering a return of Rs 40,000 over 40 years, emphasizing its data-driven success and market position.

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