The metropolis police on Thursday arrested two senior executives of scam-hit Karvy Stock Broking Pvt Ltd for allegedly involving in diverting funds raised from banks by pledging purchasers’ securities as collaterals. According to a police press launch, Rajiv Ranjan Singh, Chief Executive Officer and G. Krishna Hari Chief Financial Officer of Karvy have been arrested basing on a criticism by IndusInd financial institution.

The police had earlier arrested C Parthasarathy, Chairman of Karvy, on prices of defaulting a mortgage to the tune of Rs 137 crore to IndusInd Bank. In November 2019, SEBI barred KSBL from taking new brokerage purchasers after it was discovered that the brokerage agency had allegedly misused purchasers’ securities to the tune of over Rs 2,000 crore. In November 2020, Bombay Stock Exchange declared Karvy Stock Broking as a defaulter and eliminated the brokerage home from its membership after an analogous motion was initiated by the National Stock Exchange.

(PTI)