Karvy Stock Broking Limited Boss Booked For Rs 563 Million Fraud | Hyderabad News

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HYDERABAD: Cyberabad Police have filed a complaint against Karvy Stock Broking Limited (KSBL) and its chairman C Parthasarathy for allegedly duping ICICI Bank of Rs 563 crore. Parthasarathy is currently in pre-trial detention in a similar cheating case registered at the Central Crime Station (CCS), Hyderabad.
The complaint against KSBL, C Parthasaraty, KSBL director Yugandhar and others was filed with Gachibowli police on August 23 by ICICI bank and a case was registered under Articles 406 (criminal breach of trust) and 420 (cheat) r / w 34 of the CPI.
Cyberabad Additional DCP D Kavitha said that KSBL pledged clients’ securities with six banks without their consent between 2009 and 2019.
“Securities and Exchange Board of India (SEBI) in its circular ordered that securities of clients with trading members or clearing members cannot be pledged with banks or NBFC to raise funds. SEBI also clarified that the broker must maintain a clear separation of the client’s beneficiary account and his own beneficiary account. But the funds collected by KSBL from six banks through the pledging of clients’ shares were transferred to KSBL’s own bank accounts and not to the securities broker’s client account, which is contrary to the rules. directives from SEBI, ”Cyberabad police said in a statement.
As Parthasarathy was on remand in a CCS cheating case, Hyderabad, Cyberabad Commissioner VC Sajjanar said they would arrest him after he filed a prisoner transit warrant in court.
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