Karvy Stock Broking Limited KSBL

Sebi has taken stern action against Karvy Stock Broking for its involvement in a significant financial scandal. The brokerage firm was found to have misuse

Capital markets regulator Sebi on Thursday cancelled the registration of Karvy Investor Services Ltd (KISL) as a merchant banker for breach of eligibility criteria. The order came after the Securities and Exchange Board of India (Sebi) conducted an inspection of Karvy Investor Services during March 15-17, 2023 and in the onsite inspection, the regulator found that the merchant banker was not functioning or operational both at the registered as well as in the correspondence address. Subsequently, the regulator had continued the inspection and found that Karvy Investor Services did not have the required infrastructure. "...by not having necessary infrastructure like adequate office space, equipment etc. and minimum two employees having the experience to conduct the business of merchant banker and having a director who is involved in a litigation connected with the securities market which has an adverse bearing on the business of the applicant and by not being fit and proper person, ..

Sebi filed an appeal in the Supreme Court on December 30 last year against the SAT order of December 20

The matter pertains to an appeal by several lenders to whom defaulter Karvy had pledged securities of its clients to the tune of Rs 1,400 crore

Senior counsel representing Sebi argued that the regulator had filed an appeal before the Supreme Court on December 30 for a stay on the order

Sebi, NSE, NSDL directed to compensate lenders for shares transferred with 10% interest

According to an official statement, the ED initiated an investigation on the basis of FIRs registered by the CCS Hyderabad Police

Capital markets regulator Sebi on Wednesday sent demand notices to three former officials of Karvy Group, asking them to pay about Rs 1.8 crore in the case of the misappropriation of client's funds by Karvy Stock Broking Ltd (KSBL). The regulator has warned them of arrest and attachment of assets as well as bank accounts if they fail to make the payment within 15 days. Those who have been sent notices are Krishna Hari G, who was VP (F&A) of KSBL; Srikrishna Gurazada, former compliance officer of KSBL and Srinivasa Raju, who was the General Manager of back office operation. The demand notices came after the officials failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi) in May. In three separate notices, Sebi directed Krishna Hari G to pay Rs 1.06 crore and asked Raju and Gurazada to remit Rs 42.41 lakh and Rs 31.81 lakh, respectively. This includes interest and recovery costs, within 15 days. In the event of non-payment of dues, the market ..

Sebi had banned the Karvy and its promoters from the market for seven years through its order in April this year

Capital markets regulator Sebi on Friday imposed a penalty totalling Rs 1.9 crore on four former officials of Karvy Group for flouting norms in the case pertaining to misappropriation of clients' funds by Karvy Stock Broking Ltd (KSBL). They have been directed to pay the fine within 45 days, according to the order passed by the Securities and Exchange Board of India (Sebi). The order came after Sebi initiated adjudication proceedings against the key persons of KSBL, who allegedly contributed/colluded with the brokerage house in its wrongdoings. Those penalised by Sebi are Krishna Hari G, who was VP (F&A) of KSBL; Srikrishna Gurazada, former compliance officer of KSBL; Srinivasa Raju, who was the General Manager- back office operations; and V Mahesh, who was the MD of Karvy Stock Broking's subsidiary KDMSL. The case relates to KSBL's raising huge funds by pledging clients' securities and by misusing the Power of Attorney (PoA) granted to it by its clients. Further, the funds by ...

Group firms directed to return Rs 1,443 cr siphoned off from clients

The government on Monday said Rs 414.24 crore has been paid to a total of 34,497 clients of Karvy Stock Broking Ltd (KSBL) from the National Stock Exchange's (NSE) investor protection fund till March 2023. In addition, NSE along with other market infrastructure institutions (MIIs) have also monetised the mutual fund distribution business of KSBL, and funds amounting to Rs 150 crore have been realized and the same is being utilized for distribution to clients of KSBL, Minister of State for Finance Pankaj Chaudhary said in a written reply to Lok Sabha. The case pertains to Karvy unauthorisedly transferring securities of its clients in one of its demat accounts by misusing Power of Attorney (PoA) given to its clients. NSE and BSE suspended trading terminals of KSBL from December 2, 2019 and declared it a defaulter on November 23, 2020 for misusing clients' funds and securities. Moreover, NSE has declared 32 stock brokers as defaulters in the past five years for failing to comply wit

Capital markets regulator Sebi on Wednesday levied a fine totalling Rs 75 lakh on Indian Clearing Corp Ltd (ICCL) and NSE Clearing Corp Ltd (NCL) for violating norms in the matter of Karvy Stock Broking Ltd (KSBL). In two separate orders, the regulator slapped a fine of Rs 50 lakh on ICCL and Rs 25 lakh on NSE Clearing Corporation. The order came after market watchdog initiated adjudication proceedings against ICCL and NSE Clearing Corp for alleged violation of provisions of Sebi's early warning mechanism (EWM) circular issued on December, 2018. Under the EWM circular, alerts triggered at one stock exchange / clearing corporation/ depository through early warning mechanism shall be immediately shared with other stock exchanges / depositories with respect to the stock broker / depository participant. It was observed that National Securities Depository Limited (NSDL) sent various alerts pertaining to KSBL to ICCL and NCL during February-November 2019. ICCL and NCL were required to .

The broking firm had misused securities from clients through unauthorised pledging which were used to raise funds from several banks

In an order on April 12, Sebi had slapped a penalty of Rs 3 crore on BSE and Rs 2 crore on NSE for "laxity" on their part in detecting misuse of clients' securities by KSBL

Brokerage misused securities worth Rs 2,300 crore belonging to more than 95,000 clients, says regulator

The agency obtained the audit report conducted by the National Stock Exchange (NSE) and the orders passed by the Securities and Exchange Board of India (Sebi)

The order came after Axis Bank challenged the communication issued on December 8, 2020 by NSE

As of July 2021, Karvy Stock Broking had 1.2 million folios and total asset under management (AUM) of Rs 9,261 crore

This is part of a money laundering investigation