SEBI bans Karvy Stock Broking Limited due to a default of Rs 2,000 crore for a client
New Delhi, Nov 23 (HS): The Securities and Exchange Board of India (SEBI) has banned stock brokerage company Karvy Stock Broking Limited (KSBL-Karvy Stock Brokers Limited) due to a default of Rs 2,000 crore for a client. The ban imposed on Karvy by SEBI is effective immediately. According to the ban imposed by SEBI, the company can neither connect new clients with itself nor will it be able to trade for existing customers.
NSE found a big flaw in the investigation – National Stock Exchange (NSE – National Stock Exchange) found in its investigation that Karvy had allegedly sold his client’s stock to a related entity. The market regulator has instructed the depositories not to ignore any instructions of Karvy Stock Broking.
Experts said that if someone’s broking account is in Karvi then he should change it immediately. That is, it would be right to shift the shares to another broking account. Power use of an attorney is wrong – National Stock Exchange has said that Karvy Stock Broking has misused Power of Attorney. Karvy has sold the security of his clients with the help of his subsidiaries. The fund used by it has been used by the company for its needs.
Sebi said, ‘To hide this, Curvy Stock Brokerage Limited has not mentioned it in the submissions made to the National Stock Exchange between January 2019 to August 2019.
