Two employees of a financial services company were arrested by Hyderabad police on Monday on charges of cheating and misappropriation of stock holding of investors without authorisation.
The accused are G. Mounika (25), branch manager, and Shivini Gari Shetty Vasundhara (41), assistant branch manager of Karvy Stock Broking, Tarnaka branch.
Joint Commissioner of Police (Detective Department) Avinash Mohanty said Mounika and Vasundhara took the signatures of Ramarao Nagaraj, an overseas citizen of India, and his wife on blank papers, when they visited the branch office for activation of their demat accounts in February 2018. The accused traded the demat account of the couple, between May 2018 to February 2019, without their consent and caused a loss of ₹1 crore by repeatedly trading nearly ₹100 crore for brokerage sharing between 60% and 40% between the Karvy stock broking office and Karvy main office. “They violated the rules of SEBI and NSE without taking any purchase order from the complainant and his wife,” Mr. Mohanty added.
On September 25, Mr Nagaraj approached Central Crime Station to lodge a complaint, stating that he and his wife had stock equivalent to ₹1 crore in their demat account at Karvy Stock Broking, Tarnaka. Based on the complaint, a case was registered and the accused were arrested and remanded to judicial custody, the senior officer said.