The market regulator had passed this order against Karvy for its role in the 2005 initial public offer (IPO) scam.
Sebi had on June 22, 2007 banned KSBL from acting as a broker for three months and asked the company not to open new investor accounts as a depository participant till December 31,2007.
KSBL had appealed against the Sebi freeze on its brokerage business. The freeze was to be effective after 21 days of the Sebi order. After listening to counsels of both Karvy and Sebi, SAT's three-member bench stayed the Sebi order last year.