'Harshad Mehta-era scams are back': Harsh Goenka warns retail investors of severe losses amid bull run

"Gujarati-Marwari brokers driving their stock prices to unrealistic levels": This is what RPG Group Chairman Harsh Goenka stated while warning retail investors of ‘severe losses’ amid the booming stock market.

In a recent post on X, Goenka mentioned that the malpractices of the Harshad Mehta/Ketan Parekh era are back, particularly in Kolkata.

He said stock prices are being driven to unrealistic levels as promoters are inflating profits (through profit entry) in nexus with Gujarati-Marwari brokers.

"With a booming stock market, all the malpractices of Harshad Mehta/Ketan Parekh era are back primarily in Kolkata. Promoters are inflating profits (through profit entry) and in nexus with Gujarati-Marwari brokers driving their stock prices to unrealistic levels," he wrote.

He also urged stock market regulator The Securities and Exchange Board of India (SEBI) and the Indian Finance Ministry to step in and initiate investigation.

"It's time for SEBI_India and FinMinIndia to step in and investigate before small investors suffer severe losses," he added.

With a booming stock market, all the malpractices of Harshad Mehta/Ketan Parekh era are back primarily in Kolkata. Promoters are inflating profits (through profit entry) and in nexus with Gujarati-Marwari brokers driving their stock prices to unrealistic levels. It's time for…

— Harsh Goenka (@hvgoenka) May 4, 2024

Netizens reactions

The post was shared on Saturday, and since then, it has garnered over 370,000 views and 2,400 likes. Many took to the comments section to praise Goenka's move in raising this issue.

Glad u raised this sir!

There r clearly few social media darling stocks that r operator driven. Have absolutely no fundamentals, just get tipped citing momentum, random insignificant news, charts etc.

Such influencers make money 2 ways

1. Get paid by influencer marketing…

— Madhusudhan ML (@ml_madhusudhan) May 4, 2024

In every bull market, there will be victims - and it is always the poor retail/small investors, who unfortunately believe everyone is trustworthy !

— MC Investor (@SathyeshBhat) May 4, 2024

Mostly the major Steel houses. One of them saw their shares zoom close to 30x in last one year to 1000+ levels.

— Vikas Agarwal (@VikasAgarwalll) May 4, 2024