Karvy indulged in activities which were never allowed, says Sebi chief

Tyagi said that, in June, Sebi had made its stance 'explicit' through a circular and hinted that there was no case for entities to indulge in such practices before that as well

In the aftermath of Karvy Stock Broking episode, capital market watchdog Sebi on Wednesday said the brokerage was indulging in activities which were "never allowed".

The comments from the regulator's chairman Ajay Tyagi come days after Securities and Exchange Board of India (Sebi) banned Karvy, with immediate effect, for selling client stocks pledged with it through associated entities.

Tyagi added that, in June, Sebi had made its stance “explicit” through a circular and hinted that there was no case for entities to indulge in such practices before that as well.

"What is basically never allowed was being done. It is not that this