Hyderabad: Karvy Stock Broking Private Limited’s (KSBL) Chief Operating Officer (COO) and Chief Financial Officer (CFO) were arrested on Thursday by Hyderabad Central Crime Police, as a part of their ongoing investigation into the firm’s financial irregularities.
According to police reports, Rajiv Ranjan Singh, Chief Executive Officer (CEO) and G Krishna Hari, CFO, were arrested as a result of a complaint filed by IndusInd bank. Earlier, the police arrested Karvy chairman C Parthasarathy on charges of defaulting on a loan to IndusInd Bank worth Rs 137 crore.
The Securities and Exchange Board of India (SEBI) barred KSBL from taking on new brokerage clients in November 2019 after it was discovered that the brokerage firm had allegedly misused it’s clients securities by over Rs 2,000 crore.
After a similar action by the National Stock Exchange, the Bombay Stock Exchange declared Karvy Stock Broking a defaulter and removed it from it’s membership in November 2020.