Karvy: Clients of commodity arm knock on bourses' doors over payment delay

Karvy group's commodity broking arm, too, is facing a liquidity crisis because of some issues related to NCDEX

The Karvy Stock Broking fiasco has spilled over to the commodities space, with clients of sister concern Karvy Comtrade facing payment-related issues. People in the know said banks, which had lent money against pledged shares to Karvy Stock Broking, have stopped “withdrawal” by Karvy Comtrade clients, resulting in delay of pay-outs. 

They added that majority of the clients, who actively trade through Karvy Comtrade, have approached the Multi Commodity Exchange (MCX), National Commodity & Derivatives Exchange (NCDX) and Indian Commodity Exchange (ICEX), seeking intervention. 

The exchanges are said to be working with the markets regulator to ensure that investors’ interest are safeguarded. 

Karvy