Hyderabad, Sep 2: The Cops arrested two senior executives of scam-hit Karvy Stock Broking Pvt Ltd. They are charged against diverting funds raised from banks by pledging clients’ securities as collaterals. Rajiv Ranjan Singh, Chief Executive Officer and G. Krishna Hari, Chief Financial Officer of Karvy was captured based on a grievance by IndusInd bank.
Earlier, C Parthasarathy, Chairman of Karvy, was arrested against charges of defaulting on a loan of Rs 137 crore to IndusInd Bank. In November 2019, SEBI barred KSBL from taking new brokerage clients. SEBI discovered that the brokerage firm had assertedly misused clients’ securities to the tune of over Rs 2,000 crore. In November 2020, BSE declared Karvy Stock Broking as a defaulter and detached the brokerage house from its membership after a similar action was initiated by the National Stock Exchange.
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