Misuse of client funds: SAT asks Sebi to review order issued against Karvy

The Sebi counsel informed the tribunal about the forensic audit initiated against the brokerage

The Securities Appellate Tribunal (SAT) on Friday directed markets regulator the Securities and Exchange Board of India (Sebi) to review the ex parte ad interim order issued against Karvy Stock Broking (KSBL) for alleged misuse of client securities.
The brokerage had moved the tribunal seeking limited modifications to the Sebi order.

“Since a clarification has been sought by the appellant we deem it fit and proper that the WTM (whole-time member) should look into this aspect and pass appropriate order after giving an opportunity of hearing to the appellant,” said SAT in an order.

Following the Sebi order on November 22, Karvy