The Age Of Stars

FX regime · 1 March 1992

LERMS dual rate, then unified market-determined rate

End of the administered peg

ReportedOfficial record. Source: RBI

equity (BSE) · 1 April 1992

Securities scam disclosed; market crash

Sensex fell from about 4,500 to about 2,500; reported market-capitalisation loss of ₹1,000 billion

Month-level date: the first press disclosure is commonly given as 1992-04-23 and the RBI's Janakiraman Committee reported in May 1992; the exact disclosure day is not verified here. The two figures are the corrupted-with-the-fraud numbers, not the fraud amount

UnconfirmedPress. Source: https://en.wikipedia.org/wiki/1992_Indian_stock_market_scam

equity / country risk · 6 December 1992

Demolition of the Babri Masjid, then the Bombay riots

Market and country-risk effect is universally described and was severe, but I obtained no published magnitude for the Sensex move; the Srikrishna Commission (1998) found 900 dead in Bombay

UnconfirmedPress. Source: https://en.wikipedia.org/wiki/1993_Bombay_bombings

Liberalised Exchange Rate Management System (LERMS), March 1992

A dual exchange rate, official rate plus a market-determined rate, introduced as the transition step towards a…

A dual exchange rate, official rate plus a market-determined rate, introduced as the transition step towards a market-determined rupee

VerifiedOfficial record. Source: rbi.org.in

SEBI Insider Trading Regulations, 1992

Capital-market rule-making following the April 1992 securities scam disclosures

VerifiedOfficial record. Source: rbi.org.in

South Asia, Ayodhya and Bombay

Demolition of the Babri Masjid, followed by nationwide riots including the Bombay riots of Dec…

The Bombay riots, a direct market shock and a precondition of the March 1993 bombings; the Srikrishna Commission (1998) found 900 dead and over 2,000 injured in Bombay alone

ReportedPress. Source: https://en.wikipedia.org/wiki/1993_Bombay_bombings

banking and securities (ready-forward deals, fake bank receipts, unsecured lending against G-secs)

Harshad Mehta / Bombay securities scam ("the scam")

$1,927 million

Mehta convicted on four of 27 charges (Bombay High Court/Supreme Court); died 2001-12-31 while appeals pending; banks wrote off large sums

ReportedPress. Source: https://en.wikipedia.org/wiki/1992_Indian_stock_market_scam

banking and securities

Harshad Mehta scam, alternative valuation using the IIMA/Vikalpa study

$386 million

as above

ReportedPeer-reviewed. Source: https://en.wikipedia.org/wiki/1992_Indian_stock_market_scam

equity market

Market-capitalisation loss from the scam and crash (not the fraud amount, do not conflate)

UnconfirmedPress. Source: https://en.wikipedia.org/wiki/1992_Indian_stock_market_scam