• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Thursday, September 28, 2023
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

Sebi cancels registration of Karvy Stock Broking for misappropriating clients’ funds

by The Outlooker Web Desk
May 31, 2023
in Business
0
Sebi cancels registration of Karvy Stock Broking for misappropriating clients’ funds
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

Capital markets regulator Sebi on Wednesday cancelled the registration of brokerage firm Karvy Stock Broking Ltd (KSBL) for mis-utilising clients’ funds and securities.

Cancelling the registration, Sebi said that Karvy was involved in transferring of funds from clients’ accounts to own accounts. Such funds were, in turn transferred to the group companies of the brokerage house. Further, it raised funds by pledging clients’ securities.

Going by the order, the overall borrowing of Karvy, which was raising loans from financial institutions by pledging shares of its clients as collateral, was Rs 2,032.67 crore by September 2019 and the value of securities pledge by the stock broker was Rs 2,700 crore during the period.

In addition, the brokerage firm did not settle clients’ funds and securities, failed to furnish details of bank accounts and depository participant accounts and failed to cooperate with the forensic auditor in the proper assessment of the assets and liabilities of the member towards clients, Sebi said in its order.

Noting that Karvy has been declared a defaulter and expelled by BSE and NSE in November 2020, Sebi has cancelled “the certificate of registration of Karvy Stock Broking Ltd” under the Intermediaries Regulations.

This comes after Sebi last month barred Karvy and its promoter Comandur Parthasarathy from the securities market for seven years and imposed a penalty of Rs 21 crore on them for misappropriating clients’ funds by misusing the Power of Attorney given to it.

In November 2019, the watchdog, through its interim order, barred KSBL from taking new brokerage clients after it was found that the firm had allegedly misused clients’ securities to the tune of over Rs 2,000 crore. The interim order came after NSE forwarded a preliminary report to Sebi on non-compliances observed with respect to pledging or misuse of clients’ securities by Karvy Stock Broking. Finally, the directions issued through the interim order were confirmed by Sebi in November 2020.

The exchange’s preliminary report was the result of the limited purpose inspection of Karvy Stock Broking conducted by it on August 19, 2019, covering the period from January 1, 2019 onwards.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
Sebi’s FPI mandate will be tricky to enforce, say experts

Sebi’s FPI mandate will be tricky to enforce, say experts

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mogul Gather to Discuss New Opportunities for China-EU Cooperation-2023 Sino-European Entrepreneurs Qingdao Forum was Grandly Held
Business

Mogul Gather to Discuss New Opportunities for China-EU Cooperation-2023 Sino-European Entrepreneurs Qingdao Forum was Grandly Held

September 26, 2023
Rapper SKG Co-Hosted Her First Annual Back 2 School Drive
Entertainment

Rapper SKG Co-Hosted Her First Annual Back 2 School Drive

September 21, 2023
DYU D3F electric bicycle: a travel art for modern urban life by integrating technology and design
Tech

DYU D3F electric bicycle: a travel art for modern urban life by integrating technology and design

September 12, 2023
DYU A1F electric bicycle: The fusion of modern technology and classic design leads the market trend
Tech

DYU A1F electric bicycle: The fusion of modern technology and classic design leads the market trend

August 31, 2023

Connect with us

No Result
View All Result

Archives

  • September 2023
  • August 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Local
  • Movie
  • Music
  • National
  • Offbeat
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • Mogul Gather to Discuss New Opportunities for China-EU Cooperation-2023 Sino-European Entrepreneurs Qingdao Forum was Grandly Held
  • Rapper SKG Co-Hosted Her First Annual Back 2 School Drive
  • DYU D3F electric bicycle: a travel art for modern urban life by integrating technology and design

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.