According to him, the HDFC bank also filed a similar complaint against the Karvy group. The banks in their complaint alleged that the Karvy group represented by Parthasarathy illegally pledged the shares of its customers and used loans. The loan amounts were diverted to other companies and subsequently defaulted, the official added.
The HDFC bank in its complaint alleged that Karvy in total defaulted nearly Rs 350 crore while it was around Rs 237 crore in the case of
. In November 2020, the Bombay Stock Exchange declared Karvy Stock Broking in default and pulled the brokerage house from its members after similar action was initiated by the National Stock Exchange.
In November 2019, the regulator banned Karvy from taking on new brokerage clients after discovering that the brokerage firm had allegedly misused its clients’ securities for more than Rs 2,000 crore.
