Indiabulls V-P held for Rs 1-crore demat fraud

TIMES NEWS NETWORK

Kolkata: Siddhartha Daga, vice-president (eastern region), Indiabulls, was
arrested on Tuesday for allegedly hacking into the demat account of a client
and carrying out a Rs-1 crore fraud. Daga has been remanded in police
custody till August 18.
   In just 45 minutes—during the first hour of trading on August 6—Daga is
accused of having sold or diverting every single share that Arunabha
Chakraborty owned to his own account. Chakraborty suffered a loss of Rs 46
lakh. The frenzied trading drew the attention of the Securities & Exchange
Board of India (Sebi) and led to a police investigation.
   The trail led to a top-ranking official of one of the biggest financial
houses of the country. Detectives raided Daga’s residence on Tagore Castle
Street and his office on Lee Road on Tuesday and seized his computers and
hard-disks.
   Chakraborty, a chartered accountant, had recently opened a demat account
with Indiabulls. When trading stopped on August 5, he logged off and had no
clue what awaited him. His account was hacked that night, a police official
said. The next morning, he couldn’t operate the account.
   Detectives learnt that Daga had extracted the password of Chakraborty’s
account through the person who had helped open it. Daga logged into the
account and changed the password, the police official added.
   Chakraborty had erred in not personalising his password. In an earlier
case, an employee of a private bank had similarly duped several demat
customers. “We have to find out if more people helped Daga in hacking the
account,’’ said joint commissioner of police (HQ) Jawed Shamim. The
Indiabulls spokesperson could not be contacted.
   Chakraborty owned 65,000 shares of a pharmaceutical company. Of these,
Daga allegedly transferred 20,000 to a trading account he owned in the
sharebroking outfit Sharekhan. The remaining 45,000 shares were sold at a
lower rate in the open market, which Daga later purchased.
   “Chakraborty suffered a loss of Rs 46 lakh,’’ another officer said.
“Both, the company and Sebi, were trying to find out why and how such a
large transaction took place on a single day,’’ Shamim said.

 IN THE DOCK: Siddhartha Daga was produced at the Alipore court in Kolkata
on Tuesday

--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups 
""GLOBAL SPECULATORS"" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to 
[email protected]
For more options, visit this group at 
http://groups.google.com/group/globalspeculators?hl=en
-~----------~----~----~----~------~----~------~--~---

Reply via email to