Karvy CEO, CFO held in IndusInd Bank default case

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.

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