Home CRIME Bengaluru CCB detains stock broker of Hyderabad firm

Bengaluru CCB detains stock broker of Hyderabad firm

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Bengaluru CCB detains stock broker of Hyderabad firm

Karvy Stock Broking’s clients file complaints regarding combined losses of Rs 100 crore

According to CCB, Karvy pledged clients’ demat securities to raise funds in violation of SEBI rules

BENGALURU:

A day after city police commissioner Kamal Pant transferred 3 cases against Hyderabad-headquartered Karvy Stock Broking Ltd (KSBL) to the Central Crime Branch, a CCB team headed by Assistant Commissioner of Police HN Dharmendra has detained one person in connection with an alleged fraud.

According to a CCB press release, the stock broking firm allegedly pledged the securities in the demat accounts of clients without their knowledge for raising funds for its multiple businesses, in violation of market watchdog SEBI’s rules.

The person detained by the CCB has been identified as Vijayendra, KSBL’s Bengaluru stock broker. According to a senior police officer, any Bengaluru resident who has lost money in dealing with the firm can complain to the jurisdictional police or the CCB.

The CCB act follows 3 separate complaints of monetary loss by 3 businessmen against the firm with the Seshadripuram police. Sources say the complainants, who were clients of KSBL, have alleged losses to the tune of Rs 100 crore. According to a senior police officer, the Hyderabad police have arrested a few persons and the Bengaluru police may seek a body warrant from the court for the accused later.

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