The history of the stock market in India goes back to the end of the eighteenth century when long-term negotiable securities were first issued. In 1850 the Companies Act was introduced for the first time bringing with it the feature of limited liability and generating investor interest in corporate securities. The first stock exchange in India was set-up in 1875 as The Native Share and Stock Brokers Association in Bombay. Today it is known as the Bombay Stock Exchange (BSE). This was followed by the development of exchanges in Ahmedabad (1894), Calcutta(1908) and Madras(1937). It is interesting to note that stock exchanges were first set up in major centers of trade and commerce. Until the early 1990s, the Indian secondary market comprised regional stock exchanges with BSE heading the list. After the reforms of 1991, the Indian secondary market acquired a three tier form. This consists of: • Regional Stock Exchanges • National Stock Exchange (NSE) • Over the Counter Exchange of India (OTCEI)

Which of the following scam is one of the major market scam of India?

Harshad Mehta Scam

The scam was the biggest money market scam ever committed in India, amounting to approximately ₹ 500 crores. The main perpetrator of the scam was a stock and money market broker Harshad Mehta.