NSE expels Karvy Stock Broking from membership
Investors with fund balances up to Rs 30,000 due from Karvy have been settled, says NSE
New Delhi: The National Stock Exchange (NSE) has declared Karvy Stock Broking Ltd as a defaulter for non-compliance with the regulatory provisions of the bourse.
In addition, Karvy Stock Broking has been expelled from the membership of the exchange, the NSE said in a circular. The move effective from November 23, was taken as the broker failed to comply with NSE guidelines, it added. Under the guidelines, stockbrokers are required to fulfil their obligations and should not involve in any misconduct, or unprofessional conduct among others.
In a statement, NSE said: "While disciplinary proceedings are underway, funds and securities of approximately Rs 2,300 crore belonging to about 2,35,000 investors have been settled so far, with efforts focused on settlement of small investors. Investors with fund balances up to Rs 30,000 due from Karvy Stock Broking have been settled."
Earlier, Karvy had unauthorisedly transferred securities of clients into its demat accounts by misusing the PoAs (Power of Attorney) given by its clients. In November 2019, the market regulator Sebi had barred Karvy from taking new brokerage clients after it was found that it had allegedly misused clients' securities worth Rs 2,000 cr.