Shivraj Puri, the alleged mastermind behind the Rs 300-crore Citibank fraud, invested most of the funds raised from corporate entities and high networth individuals in derivative instruments in stock markets.
A major chunk of investment into stock markets was done through derivatives like Nifty options, while cash market exposure was negligible, sources said.
Nifty options is a derivative contract wherein an investor needs to pay just the margin money and has no obligation to take delivery of a particular security.
The investment in stock markets was routed through two brokerage entities, Religare Securities and Bonanza.
To ascertain the investment pattern, a two-member team from the investigation department of the Securities and exchange Board of India (Sebi) had come from Mumbai. The team collected details about the investment pattern, role of brokerage firms and a possible share price manipulation.
