Sebi bans Karvy for Rs 2,000 crore client defaults
SEBI Market Regulatory has taken a major action. In fact, SEBI has banned Karvy Stock Broking. The Rs 2000 crore scam has come to light on this broking firm. It is by far the largest equity broker default in the country. SEBI has banned Karvy from adding new clients. Additionally, trades for existing clients are also banned. Let us tell you that Karvy is accused of misusing clients' shares.
So at the same time, according to Sebi, Karvy transferred the money to his group company Karvy Realty by selling shares held in the clients' account. Between April 2016 and December 2019, Rs 1,096 crore has been transferred to Karvy Realty. KSBL has also been accused of selling mortgaged shares of customers in off-market transfers. The market regulator has also instructed all NSDL, CDSL, BSE, NSE and MCX not to follow any of Karvy's instructions and take appropriate action against them.
In this regard, the National Stock Exchange has said that Karvy Stock Broking has misused the Power of Attorney (Power of Attorney). Karvy has sold the security of its clients with the help of its subsidiaries. The funds from this have been used by the company for its needs.
Let us tell you that SEBI said, Karvy Stock Brokerage Limited has not made any mention in the submissions made to the National Stock Exchange during January 2019 to August 2019 to hide this.