Editing Dhirubhai Ambani (section)

===Allegation of market manipulation=== 
In 1988, Reliance Industries came up against a rights issue regarding partly convertible debentures.<ref>{{cite web|url=http://www.india-seminar.com/2003/521/521%20paranjoy%20guha%20thakurta.htm |title=The two faces of Dhirubhai Ambani by Paranjoy Guha Thakurta |publisher=India-seminar.com |access-date=31 December 2010}}</ref> It was rumoured that the company was making all efforts to ensure that their stock prices did not slide an inch. Sensing an opportunity, The Bear Cartel, a group of stock brokers from [[Calcutta]], started to [[short (finance)|short sell]] the shares of Reliance. To counter this, a group of stock brokers until recently referred to as "Friends of Reliance" started to buy the short-sold shares of Reliance Industries on the [[Bombay Stock Exchange]].<ref>{{cite news |last1=Kaul |first1=Vivek |title=Master Move: How Dhirubhai Ambani turned the tables on the Kolkata bear cartel. |url=https://economictimes.indiatimes.com/master-move-how-dhirubhai-ambani-turned-the-tables-on-the-kolkata-bear-cartel/articleshow/9059587.cms?from=mdr |website=Economic Times |date=July 2011 |access-date=January 11, 2023}}</ref>

To find a solution to this situation, the Bombay Stock Exchange was closed for three business days. Authorities from the [[Bombay Stock Exchange]] (BSE) intervened in the matter and brought down the "Unbadla" rate to {{INR}} 2 with a stipulation that the Bear Cartel had to deliver the shares within the next few days. The Bear Cartel bought shares of Reliance from the market at higher price levels and it was also learnt that Dhirubhai Ambani himself supplied those shares to the Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.<ref>Barua, S.K. and Verma, J.S. (1993) ''The Great Indian Scam, Story of Missing Rs. 40&nbsp;billion''. University of California. {{ISBN|8170941288}}. pp. 16–17</ref>

After this incident, many questions were raised by his detractors and the press. Not many people were able to understand how a yarn trader until a few years ago was able to get in such a huge amount of cash flow during a crisis period. The answer to this was provided by the then finance minister, [[Pranab Mukherjee]] in the Parliament. He informed the house that a Non-Resident Indian had invested up to {{INR}} 220 million in Reliance during 1982–83. These investments were routed through many companies like Crocodile, Lota and Fiasco. These companies were primarily registered in [[Isle of Man]]. All the promoters or owners of these companies had a common surname [[Shah]]. An investigation by the [[Reserve Bank of India]] in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters.<ref>{{cite web|url=http://in.rediff.com/money/2002/jul/08amb4.htm |title=rediff.com: For this fighter, life was a big battle |work=Rediff.com |access-date=31 December 2010}}</ref>