Lessons from Karvy fiasco: Solution lies in better implementation of rules

What's required is proper implementation of the rules and better coordination between market intermediaries such as stock exchanges and clearing members who play a key role in monitoring brokerages

The Securities and Exchange Board of India (Sebi's) preventive order on Karvy Stock Broking (KBSL) brings to light the loopholes that brokers exploit. 

Experts said mere tightening of the existing rules won’t provide a lasting solution. What’s required, according to them, is proper implementation of the existing rules and better coordination between market intermediaries such as stock exchanges and clearing members who play a key role in monitoring brokerages. 

The Karvy episode is not the first of its kind incident of misappropriation investors’ money by the brokers -- it is a half-a-decade-old issue, which keeps emerging because of lack of