SAT stays Sebi order against Karvy Stock Broking

The Securities Appellate Tribunal has stayed a Sebi order that barred Karvy Stock Broking Ltd (KSBL) from taking up new assignment or launching new schemes for six months in respect of its role as a stock broker.
Capital market watchdog Sebi's ruling was with regard to the IPO scam of 2003-2005.
The tribunal has stayed the implementation of Sebi order till June 23, the day when the matter would be heard by it.
"Till the hearing of the appeal, stay of operation of the impugned order recorded by the whole time member of Sebi in the impugned order shall continue to be in force," SAT said in its order dated April 16.

As per the order, by consent the appeal is placed for hearing at the stage of admission on June 23.
"In the mean time affidavit-in-reply, if any, be filed by the respondent on or before May 30, 2014," it added.

In a circular today, the National Stock Exchange has advised members to take note of the tribunal's order and ensure compliance.
SAT order has been posted on the exchange's website along with the circular.
On March 19, NSE through a circular had informed members about the Sebi order.
Securities and Exchange Board of India (Sebi) had found that Karvy Stock Broking Ltd "failed to maintain high standards of integrity and further indulged in manipulation and malpractices and thereby violated the code of conduct" specified in its Broker Regulations.

The case relates large-scale irregularities in as many as 21 IPOs during 2003-2005 period.
Sebi's Whole Time Member Prashant Saran had passed the order against Karvy Stock Broking Ltd on March 14.