Mumbai (Maharashtra) [India], April 28 (ANI/PNN): SEBI-registered research analyst with more than 35 years of impeccable track record will help StockDaddy, EaseMy Trade's flagship brand; achieve its vision of simplifying financial market learning in India.

New Delhi [India], January 27 (ANI): The Enforcement Directorate (ED) has arrested CMD and CFO of Karvy Group in a money laundering case committed through the illegal diversion of clients' securities by Karvy Stock Broking Ltd worth Rs 2,873.82 crore, the agency said on Thursday.

New Delhi Jan 27 PTI The Enforcement Directorate ED on Thursday said it has arrested Karvy Stock Broking Limited KSBL CMD CParthasarathyand group CFO G Krishna Hari in connection with a money laundering investigation linked to alleged diversion of clients securities of over Rs 2873 croreThe agency produced the two-- already lodged in central jail Bengaluru after being arrested by the police-- before a special Prevention of Money Laundering Act PMLA court in Hyderabad on January 20 and on January 25 it remanded them to four days of ED custody from January 27-30 it said in a statementThe ED case filed under the criminal provisions of the PMLA is based on multiple Telangana Police FIRs filed by the HDFC Bank few other banks and investors alleging clients securities were illegally diverted by Karvy Stock Broking Ltd and these were later pledged with banks and non banking financial companies NBFCs for loans which were later defaultedThe ED has earlier recorded the statement of various Karvy group employees and also conducted searches in this case in September last yearThe ED has uncovered the complex web of transactions designed by the senior management of the Karvy Group to misuse the securities of their clients and to raise loans fraudulently which were then rotated via multiple related companies and diverted away from the stated purposeThe shares of clients who did not owe any funds to KSBL were also transferred to the marginpool account of KSBL and were pledged with the banks NBFCs the agency saidThe power of attorney POA given by clients to KSBL to facilitate exchange settlements was grossly misused by KSBL at the directions of the CMD and senior executives It said CMD Parthasarathy and chief financial officer CFO Hari were the main conspirators who gave instructions to others Fund trail investigation has shown that the borrowed funds were transferred to other group companies particularly to one wholly-owned subsidiary of KSBL Karvy Realty India Limited KRIL and then to 14 shell companies floated by Karvy Group They have been further diverted by layering done through complex web of transactions from the several accounts of group companies without any financial rationale it saidIt said various financial consultants and defunct NBFCs were used to route the funds It was found that KSBL availed loans from NBFCs to the tune of Rs 400 crore in the name of five such shell companies by pledging shares of clients of KSBL after illegally transferring these shares to their account The fraudulently availed loans were used to clear pending loans of related companies do massive stock transactions which have allegedly turned into complete losses and diverted to personally held family companies it saidThe agency last year had frozen Rs 700 crore worth shares of Parthasarathy as it said it was investigating the money trail to trace the proceeds of crime which are close to around Rs 2000 crore PTI NES DV DV

New Delhi Sep 25 PTI The Enforcement Directorate ED on Saturday said it has frozen shares worth Rs 700 crore after raids against Karvy Stock Broking Limited KSBL CMD C Parthasarathy and others as part of a money laundering investigation against themHeis currently lodged in the Chanchalguda jail of Hyderabad after being arrested by the Telangana Police last month The ED searches were carried out on September 22 at six locations in Hyderabad and on various premises of Karvy group of companies connected entities and the residential premises of C Parthasarathy the agency said in a statementSeveral incriminating evidences in the form of property documents personal diaries electronic devices email dumps etc have been seized and are being analysed it saidIt is reliably learnt that C Parthasarathy is trying to off-load his shares in the group companies through private deals and thus in order to preserve the proceeds of crime till further investigation ED has issued a freezing order on September 24 and the estimated value of these shares has been arrived at Rs 700 crore as per the valuation for the year 2019-20 it saidThese shares of the Karvy group are being held directly and indirectly by CMD Comandur Parthasarathy his sons Rajat Parthasarathy and Adhiraj Parthasarathy and their entities The ED case filed under the criminal provisions of the Prevention of Money Laundering Act PMLA is based on a Telangana Police FIR alleging KSBL had illegally pledged the securities of its clients and taken a loan of Rs 329 crore and diverted the same Another FIR has been registered by central crime station of Hyderabad Police for defrauding IndusInd Bank to the tune of Rs 137 crore and one more FIR has been registered by Cyberabad Police authorities for defrauding ICICI Bank to the tune of Rs 5625 crore it saidThe ED has clubbed all these FIRs as part of its probe and has also recorded the statement of C Parthasarathy in jailKSBL under the leadership of C Parthasarathy had committed gross irregularities and all the illegally taken loans have become NPA the agency saidIt is learnt that more FIRs are being registered by other banks and also individual shareholders investors the ED saidThe total loan proceeds taken from multiple banks using the same modus operandi is around Rs 2873 crore it said adding that theNSE and SEBI are also investigating the affairs of KSBLThe agency said its probe found that KSBL did not report the depository participatory or DP account no 11458979 named KARVY STOCK BROKING LTD BSE in the filings made from January-August 2019 with regulatorsexchanges KSBL fraudulently transferred shares belonging to its clients to its own demat account which is not disclosed to the exchanges and pledged the shares held in these accounts with the lendersbanks HDFC bank ICICI bank IndusInd bank Axis Bank etc The securities lying in the aforesaid DP account of KSBL actually belonged to the clients who wereare the legitimate owners of the pledged securities the agency saidIt said KSBL did not have any legal right to create a pledge on these securities and generate funds The quantum of such loans taken by KSBL from illegal pledge of shares is to the tune of Rs 2873 crore KSBL credited the funds raised by pledging of client securities to 6 of its own bank accounts stock broker-own account instead of the Stock Broker-Client Account and further has not reported these 6 own bank accounts stock broker-own account held with various private banks to the Sebi it allegedPrima facie the ED said a net amount of Rs 1096 crore was transferred by KSBL to its group company--Karvy Realty India Ltd-- between April 1 2016 to October 19 2019 It accused KSBL of conducting large-scale trading activities in the names of 9 companies that included Karvy Consultants Limited KCL which is a group company of Karvy and 8 other shell companies in the guise of doing insurance business Several crore of rupees were diverted for acquiring immovable properties through the group company KRIL and to other group companies as well It also came to light that recently deletion of files and emails from the computer servers by using anti-forensic tools had been done under the instructions of C Parthasarathy it claimedThe bank statement analysis of these companies revealed that there is large value rotation of funds between the Karvy group companies and the bank accounts of certain shell companiesPTI NES TIR TIR