Case against Karvy Stockbroking promoters

The Gachibowli police booked a cheating case against Karvy Stockbroking Pvt Ltd head honchos C Parthasarthy and Meka Yugandhar Rao for allegedly defrauding a bank of ₹563 crore.

According to police, the case was booked after an ICICI Bank manager approached the police with a complaint alleging cheating and criminal breach of trust.

Police said that the Securities and Exchange Board of India’s circular states that clients’ securities with trading members cannot be pledged to banks or non-banking financial companies for raising funds and that SEBI also specified that broker should maintain clear segregation of client beneficiary account and its own beneficiary account.

“Funds raised by KSBL by pledging shares from its six bankers were transferred to KSBL’s own bank accounts, and not into ‘Stock Broker Client Account’, which is in contravention with the SEBI guidelines. Further, all pledges on securities were closed without approval from pledges and securities were transferred to end clients of KSBL thereby severely impacting security of all lenders including ICICI Bank,” police said in a press release.

Police said that the case is being transferred to the Economic Offences Wing of the Cyberabad Police Commissionerate.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 18, 2021 10:33:39 PM | https://www.thehindu.com/news/cities/Hyderabad/case-against-karvy-stockbroking-promoters/article36089188.ece

Next Story