ICICI bank files cheating case against Karvy Stock Broking; promoter booked for Rs 563 crore fraud

A case has been registered against Karvy Stock Broking Ltd promoter C. Parthasarathy and others for allegedly cheating ICICI Bank to the tune of Rs 563 crore. According to a press release issued by the police on Tuesday night, the case was booked under Sections 406 (criminal breach of trust), 420, r/w 34 (cheating) of IPC against the accused.

Funds raised by KSBL by pledging shares of its six bankers were transferred to the firm's own bank accounts, and not into Stock Broker Client Account', which is in contravention with the SEBI guidelines, the police said. Further, all pledges on securities were closed without approval and securities were transferred to end clients of KSBL thereby severely impacting the security of all lenders including ICICI Bank, it said.