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Enforcement Directorate (ED) on Wednesday conducted raids at multiple locations in Hyderabad and other places across India in connection with its money laundering probe against Karvy Stock Broking Limited (KSBL), news agency ANI reported.

In connection with the money laundering probe, one of the promoters of scam-hit Karvy Group, was arrested earlier on charges of defaulting a bank loan. The arrest was based on a complaint given by IndusInd Bank. 

The bank had complained that Karvy group represented by Parthasarathy unlawfully pledged the shares of its clients and availed loans. The loan amounts have been diverted to other firms and subsequently defaulted on repayment.

In November 2019, the regulator barred Karvy from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients' securities to the tune of over 2,000 crore.

Karvy has also been prohibited from alienating any of its assets, except with prior permission of the National Stock Exchange (NSE), till the settlement of claims of investors.

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