In a startling revelation based on a Sebi report on the Rs 405-crore Citibank fraud, the Gurgaon police on Thursday said prime accused Shivraj Puri took exposure of Rs 1.13 lakh crore of equity transactions in long-term Nifty options.
Puri allegedly used Rs 236 crore in speculative mode belonging to corporate entities and high net worth individuals (HNIs).
In its report submitted to the Gurgaon police on Monday, the Securities and Exchange Board of India (Sebi) stated that the former Citibank relationship manager had traded in long-term Nifty options (derivatives) between September 2009 and December 2010.
Citibank spotted the fraud on December 5 last year and reported it to the police. Puri was arrested on December 30 after he surrendered in a Gurgaon court.
According to Gurgaon police commissioner SS Deswal, the Sebi report revealed that Puri used about Rs 236crore belonging to HNIs and corporate entities for investing in long-term Nifty options.
“By paying the margin money of 2-3%, Puri played high stakes running in over a lakh of crores of stocks. As per the Sebi report, Puri took exposure of Rs 1.13 lakh crore,” Deswal said.
After the scam was unearthed, several investors had complained to the police that Puri would manage their wealth accounts and had liquidated long-term investments (holding assets) such as securities and mutual funds and invested in the brokerage companies without their knowledge.
It was later discovered that Puri had invested in long-term Nifty Index Options. He allegedly also paid R20 crore to Sanjay Gupta, an employee of Hero Corporate Limited, as “commission” to lure people to invest in his scheme.