Town police on Thursday arrested two senior executives of scam-hit Karvy Inventory Broking Pvt Ltd for allegedly involving in diverting funds raised from banks by pledging shoppers’ securities as collaterals.
In response to a police press launch, Rajiv Ranjan Singh, Chief Govt Officer and G. Krishna Hari Chief Monetary Officer of Karvy had been arrested basing on a criticism by IndusInd financial institution.
The police had earlier arrested C Parthasarathy, chairman of Karvy, on fees of defaulting a mortgage to the tune of Rs 137 crore to IndusInd Financial institution.
In November 2019, SEBI barred KSBL from taking new brokerage shoppers after it was discovered that the brokerage agency had allegedly misused shoppers’ securities to the tune of over ?2,000 crore.
In November 2020, Bombay Inventory Change declared Karvy Inventory Broking as a defaulter and eliminated the brokerage home from its membership after the same motion was initiated by the Nationwide Inventory Change.