A special court in Mumbai set up to try the securities-related scams has convicted stock brokers Ketan Parekh and Hiten Dalal, alongwith six others which includes the then top officers of Canbank Financial Services.
Justice VM Kanade of Special Court (For trial of Offences Relating to Transactions in Securities Act) held that Parkeh, Dalal and Canfina (Canbank Financial Services) officials entered into a criminal conspiracy to "siphon off Rs 47 crore".
Bangalore-based Canfina, a subsidiary of Canara Bank was the victim of this scam.
Prosecution's case was that money belonging to Canfina were transferred to accounts with Canbank Mutual Fund in Mumbai by default, but instead of returning the money to Canfina, CBMF diverted it to the accounts of Parkeh and other stock-brokers.
The court is likely to pronounce their sentences on March 28.
Apart from Parekh, those held guilty of criminal conspiracy and misappropriation of funds were: Stock brokers Hiten Dalal, S K Jhaveri, Pallav Seth and Navinchandra Parekh; Canfina's former assistant vice presidents Sainath Mohan, M K Ashokkumar and former general manager of CBMF BR Acharya.
Former assistant vice president of Canfina N Balsubramaniam, former general manager of CBMF P J Subbarao and B V Shrinivasan of Vysya Bank were acquitted by the court.
These fraudulent transactions took place in October 1991 and January 1992.
Total loss to Canfina was of Rs 47 crore, 70 lakh.