SHARE MARKET’S SURTI SHER.....................
Mumbai’s most beautiful landmark,Rajabai clock tower at Bombay University ,has as its backdrop the BSE –Bombay Stock Exchange .Interestingly, the foundations of both these are linked to a Surti-Premchand Raichand. Known as the Napoleon of the share market to some, Cotton King and Bullion King to others. The clock tower is named after his mother, it is believed he got it constructed so that by its chimes, his blind mother,a staunch Jain, could keep a track of dinner time.

In the 1830’s, share trading in Mumbai began under the Banyan tree, that still stands opposite the town hall at Horniman Circle Park, then known as Cotton Green. Trade then, was that of bank shares and commodities like cotton. Surti Jain Premchand Raichand is recorded as the first Indian broker to speak, read and write English.

During the civil war, America, England Lancashire’s main supplier of cotton cut off the same, due to which the demand for cotton from the fields of Gujarat and Maharashtra soared. Premchand who had strong contacts all over Gujarat greatly benefitted from this turn of events. But while cotton and opium trade brought him wealth, his thirst for more fame and fortune led him into what was called ‘share mania ‘of the 1800’s.

The Times Of India on 6th January,1865,commented on the share market mania,’ if the man on the Moon obtained the names of two or three distinguished capitalists in Bombay, he could start a scheme which would enable him with a crore’ the next day’.Premchand was called,’ largest speculator on the island.’

In their book ‘the shaping of modern Gujarat’, Achyut Yagnik and Suchitra Sheth state how,’ in 1860, along with other share brokers, Premchand Raichand artificially inflated prices of the Commercial and Mercantile Bank and made a fortune. Englishmen and prominent traders soon came to seek his advice and he began to set up and float several new companies and banks. He set up the Reclamation project near Colaba and Walkeshwar through which he made more money and also helped others set up companies albeit always leaving his name out so as to avoid future trouble. There is no option but to acknowledge that this Surti who intoxicated by speculation, ruined not only himself but countless others too, was indeed a courageous entrepreneur’

Once, he made a single payment of Rs.11.5 crore which is equivalent to Rs. 1000.crores today. Living in the lap of luxury, his Midas touch and spoken word became the rule for his followers, turning mere scrip of paper into instant wealth, the minute he attached his name to the share of the company.

Fondly remembered as a great philanthropist, he donated generously for education and hospitals in Bombay, Calcutta, Ahmedabad, Surat and Bharuch.

The share market crashed in 1866, reason being that the American cotton supply got re established and Premchand filed for bankruptcy. The then prevailing laws were unable to hold ground against him and he could therefore, not be held accountable, legally.

Unlike Big Bulls Harshad Mehta and Raju of Satyam, whose lives and times are now going to be made into movies depicting fraud, this famous Surti was one king of the share market who had his game, played it too and got away with it. Fondly remembered for his philantrophy, not fraud.
Tapi town tattle-Kirsten commandments.