Sebi cancels registration of Karvy Stock Broking

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The same request was additionally raised by many members of the Tamil diaspora in Singapore. I’d be grateful if the request to allow extra flights between Singapore and Madurai is favourably thought-about,” the letter additional learn.

for misappropriating clients’ funds – Times of India
Capital markets regulator Sebi on Wednesday cancelled the registration of brokerage agency Karvy Inventory Broking Ltd (KSBL) for mis-utilising shoppers’ funds and securities.

Cancelling the registration, Sebi mentioned that Karvy was concerned in transferring of funds from shoppers’ accounts to personal accounts. Such funds have been, in flip transferred to the group firms of the brokerage home. Additional, it raised funds by pledging shoppers’ securities.

Going by the order, the general borrowing of Karvy, which was elevating loans from monetary establishments by pledging shares of its shoppers as collateral, was Rs 2,032.67 crore by September 2019 and the telegram database worth of securities pledge by the inventory dealer was Rs 2,700 crore through the interval.
As well as, the brokerage agency didn’t settle shoppers’ funds and securities, didn’t furnish particulars of financial institution accounts and depository participant accounts and didn’t cooperate with the forensic auditor within the correct evaluation of the belongings and liabilities of the member in direction of shoppers, Sebi mentioned in its order.

Noting that Karvy has been declared a defaulter and expelled by BSE and NSE in November 2020, Sebi has cancelled “the certificates of registration of Karvy Inventory Broking Ltd” beneath the Intermediaries Rules.
This comes after Sebi final month barred Karvy and its promoter Comandur Parthasarathy from the securities marketplace for seven years and imposed a penalty of Rs 21 crore on them for misappropriating shoppers’ funds by misusing the Energy of Lawyer given to it.