Scam (1992)
Stock Broker - Harshad Mehta
Scam Size -4000crore
Harshad Mehta stock broker and biggest scam in stock market done by him ...
Harshad mehta used to take securities or bank receipt from the borrowing bank and used to say give some time to i will give the money and on other hand harshad mehta used to find lending bank and use to tell them the money they want to lend give to me and give some time I will give u some bank receipt or (securities)and doing this was an illegal it was against the rule of RBI one bank in ready forward deal has to directly give money to the second bank they should not give to the broker but still they did this .And then what harshad mehta used to do the money of lending bank that he did not give to the borrower he used to invest in the stock market and at that time harshad mehta was king of the stock market.he was a big bull at that time and in whichever stock he used to invest those stock used to rise and with that he used to earn profit and then harshad mehta used to to two things .Either he used to book his stock market profit or used to give money to the borrowing bank and used to keep profit himself or else what did harshad mehta use to do he find a third Bank that wants to lend money he used to take money from them and use to give to the original borrowed bank and harshad mehta used to run this loop .so then money give to the bank C and for then he used to find other bank and this chain harshad mehta and many other broker used to repeat and the money the got in the middle of this .They used to put in the stock market and inflate stock value .Apart from this harshad mehta went one more step forward until now the borrowing bank use to give bank receipt/security to lend some money but harshad mehta two very small Bank top management and from them started taking fake Bank Receipt.This means such bank receipt that does have any underlying security and harshad mehta by issuing these fake Bank Receipt and give it to lending bank and take money from them in return he used to invest in stock market and because of this the bank money went into the stock market in Illigal way and the price in stock market started increasing in one year the sensex became 4x.and this is the scam done by the harshad mehta 

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