sebi:WTM/AB/MIRSD/MIRSD-SEC-4/26927/2023-24
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Facts / Headnote
Certificate of Registration of Karvy Stock Broking Ltd. (INZ000172733) cancelled
Provisions invoked
- s. 19
- s. 12(3)
Regulations
- Reg. 9(f)
- Reg. 27
- Reg. 27(1)
Parties
- Karvy Stock Broking Ltd.
Holding
The Certificate of Registration of Karvy Stock Broking Ltd. (INZ000172733) is cancelled for mis-utilisation of clients' funds and securities, non-settlement of client funds and securities, non-cooperation with the forensic auditor, non-reporting of bank and DP accounts, and granting further exposure to debit balance clients.
Full text
_____________________________________________________________________ Order in the matter of Karvy Stock Broking Ltd. 2 / 18 (ii) The Depositories i.e. NSDL and CDSL, in order to prevent further misuse of clients’ securities by KSBL, are hereby directed not to act upon any instruction given by KSBL in pursuance of power of attorney given to KSBL by its clients, with immediate effect; (iii) The Depositories shall monitor the movement of securities into and from the DP account of clients of KSBL as DP to ensure that clients’ operations are not affected; (iv) The Depositories shall not allow transfer of securities from DP account no. 11458979, named KARVY STOCK BROKING LTD (BSE) with immediate effect. The transfer of securities from DP account no. 11458979, named KARVY STOCK BROKING LTD (BSE) shall be permitted only to the respective beneficial owner who has paid in full against these securities, under supervision of NSE;”
_____________________________________________________________________ Order in the matter of Karvy Stock Broking Ltd. 3 / 18
_____________________________________________________________________ Order in the matter of Karvy Stock Broking Ltd. 4 / 18 of its Managing Director (“MD”), Mr. C Parthasarathy. The request made on behalf of the Noticee was accepted, and a fresh date of hearing was granted on November 22, 2022. The Noticee, however, again sought an adjournment, citing health issues faced by its MD. Considering the same, a fresh date of hearing was granted to the Noticee on December 6, 2022. In response, the Noticee vide an e–mail dated December 6, 2022, once again sought an adjournment. Vide this reply, in addition to citing the ill health of its MD, the Noticee also stated that it was in the process of changing its legal counsel and sought an opportunity to inspect the documents relied upon by SEBI in the P–SCN. Accordingly, SEBI granted the Noticee an opportunity to inspect the documents on December 20,
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Source: SecMarx — sebi:WTM/AB/MIRSD/MIRSD-SEC-4/26927/2023-24. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.