Published : April 27, 2021
One of the most robust markets in the world happens to be the Indian stock market. Various unprecedented scams in the Indian stock market have made the regulatory authorities like SEBI to be more accountable to the public and come up with more stringent regulations pertaining to online stock trading.
One such scam which shook the Indian markets was the famous “Harshad Mehta Scam” which took place in 1992. Recently, a web series was launched showcasing the life of India’s “BIG BULL” and the “Amitabh Bachchan” of the Indian stock market. It gained popularity among viewers and came in as learning for all those wishing to enter the stock market. It also held great lessons for those already involved in trading.
Though the story was not 100% real, it surely had a bunch of lessons for you to have a hold on. Before moving on to this learning from Harshad Mehta’s story, you need to ensure that your learning mode is on. Keep the scams, manipulations, and frauds aside from your learning part before you proceed.
Harshad Mehta’s story is a great example of the fact that learning never comes to a halt. When Harshad Mehta entered the stock market he had a bare minimum of knowledge and experience, but he learned the same. He started learning from his surroundings, his experience and kept on taking knowledge from wherever he could following his passion. His fast learning attitude opened new roads of success for him. This brings us to our first lesson that if want to excel in a particular field, be open to learning and passionate about your work to help your turn the tables.
Mark Zuckerberg once said, “The biggest risk is not taking a risk” which is depicted very well through Harshad Mehta’s story. A great lesson that every entrepreneur and investor in the stock market can take from his story and this scam is having a leap of faith and taking the required risk to succeed in life. Though taking risks does not guarantee earning profits but playing safe is also far from it to some extent. If you are willing to play safe you will invest only in PPF and FD for your whole life. However, if you are willing to take some risk, you can invest your money in mutual funds, stock markets, bonds, and other financial instruments having a high risk and high return profile.
Harshad Mehta was not well educated but was confident about his plans. He was confident about what he is doing and why he is doing the same. His risk-taking attitude, plans, and confidence lead him to success. Every entrepreneur can take this lesson from Harshad’s life. Even if your business is in the initial stage or you want to start something new, being confident will take you a long way. You need to be confident about your plans and ideas. But along with being confident, you need to be sure with your research and realistic about your ideas to aware of the pitfalls of life.
Harshad Mehta very well proved that money attracts more money in the stock market. All you need to do is choose the right stocks for investment and at the right time. The lesson learned here is that if you have a small amount of money you can grow it with the right stock market investments done at the right time.
Harshad Mehta entered the stock market with a small amount of money. He was able to grow so much in this field owing to his art of researching the market well and his art of selling his idea to others. He used his skills to manipulate the bank records though the act is unethical and illegal, which he managed because of his skills. This brings us to the fifth lesson which is conducting proper research and having the skills of selling your ideas and products irrespective of the field you are operating in.
Whether it is business or investing in the stock market, teamwork plays a crucial role. Harshad Mehta has a team that supported him in building his fortune and wealth. This brings us to the last lesson from the Harshad Mehta scam. Teamwork if done in the right direction for the right cause with the right intentions can lead to great success and heights in every field of life, be it business or stock market investments.
There is a lot to learn from Harshad Mehta’s story and the scam which took place in 1992. However, while learning from such scams one should also be cautious of the pitfalls. One also needs to learn the lesson that knowledge and skills if used in the wrong direction with wrong intentions can lead to success in the short term, but will not help you sustain that success for the long term. The success achieved by the wrong means can lead to a major fall in the future.
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