Karvy CEO, CFO held in IndusInd Bank default case
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Hyderabad, September 2
The city police on Thursday arrested two senior executives of scam-hit Karvy Stock Broking Pvt Ltd for allegedly involving in diverting funds raised from banks by pledging clients’ securities as collaterals.
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Fund diversion
- Karvy chairman C Parthasarathy was earlier arrested on charges of defaulting Rs137-cr loan to IndusInd Bank
- In November 2019, SEBI had barred Karvy from taking new clients after it was found that it had allegedly misused clients’ securities worth over Rs2,000 cr
According to a police press statement, Rajiv Ranjan Singh, chief executive officer, and G Krishna Hari, chief financial officer, Karvy, were arrested on a complaint filed by IndusInd Bank. The police had earlier arrested C Parthasarathy, chairman of Karvy, on charges of defaulting a loan to the tune of Rs 137 crore to IndusInd Bank.
In November 2020, the Bombay Stock Exchange declared Karvy Stock Broking as a defaulter and removed the brokerage house from its membership after a similar action was initiated by the National Stock Exchange. — PTI
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