Karvy case: NSE says funds, securities worth Rs 2,300 crore settled
Investors with fund balances upto Rs 30,000 due from Karvy Stock Broking have been settled, the exchange said. Adding that disciplinary proceedings against Karvy Stock broking is underway.
By ET Bureau |
Agencies
MUMBAI: National Stock Exchange(NSE) on Tuesday said funds and securities worth Rs 2300 crore belonging to about 2.35 lakh investors of Karvy Stock Broking have been settled so far.
Investors with fund balances upto Rs 30,000 due from Karvy Stock Broking have been settled, the exchange said. Adding that disciplinary proceedings against Karvy Stock broking is underway.
The case relates to Karvy Stock Broking misusing power of attorney given by its clients. The brokerage house had sold client securities in the market in disguised manner through own controlled entities and had used the funds for its own purposes.
Last year in December, Sebi had banned Karvy Stock Broking from taking new clients in respect of its stock broking activities. NSE also had disabled the trading rights of Karvy Stock Broking.
“The Exchange has, in coordination with other market infrastructure institutions and under the guidance of SEBI, transferred securities to respective clients, invoked bank guarantees deposited with Clearing Corporations and liquidated securities held by Karvy Group Companies,” NSE said in a statement.
Investors with fund balances upto Rs 30,000 due from Karvy Stock Broking have been settled, the exchange said. Adding that disciplinary proceedings against Karvy Stock broking is underway.
The case relates to Karvy Stock Broking misusing power of attorney given by its clients. The brokerage house had sold client securities in the market in disguised manner through own controlled entities and had used the funds for its own purposes.
Last year in December, Sebi had banned Karvy Stock Broking from taking new clients in respect of its stock broking activities. NSE also had disabled the trading rights of Karvy Stock Broking.
“The Exchange has, in coordination with other market infrastructure institutions and under the guidance of SEBI, transferred securities to respective clients, invoked bank guarantees deposited with Clearing Corporations and liquidated securities held by Karvy Group Companies,” NSE said in a statement.
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