IIFL Securities jumped 10.2% to Rs 61.9 after the company emerged as the successful bidder for demat accounts held by Karvy Stock Broking with NSDL and CDSL.
IIFL Securities will get access to 11,06,108 accounts from Karvy Stock Broking. The custody value of these accounts as of 31 January 2021 is Rs 3,01,407 crore.Since December 2019, Karvy Stock Broking's trading terminals on NSE and BSE were closed under Sebi orders. In November 2019, SEBI barred Karvy from enrolling new clients for stock broking services and also prevented it from using the Power of Attorney (PoA) given by clients after it was found to have allegedly misused clients' securities.
Later in February 2021, NSDL and CDSL informed that the trading and the demat accounts held by Karvy will be transferred to another member/participant through a formal bidding process on the basis of laid down eligibility criteria. IIFL Securities had participated in the formal bidding process.
IIFL Securities along with its subsidiaries offers advisory and broking services, financial products distribution, institutional research and investment banking services.
On a consolidated basis, the company reported an 8.8% rise in net profit to Rs 50.59 crore on a 2.3% rise in total income to Rs 214.98 crore in Q3 FY21 over Q3 FY20.
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