Securities Appellate Tribunal Asks Securities & Exchange Board Of India To Pass Order Within 15 Days In Karvy Case
By Bobby Anthony The Securities Appellate Tribunal (SAT) has asked the Securities & Exchange Board of India (SEBI) to pass an order within 15 days in the Karvy Broking matter in response to a petition filed by Axis Bank.The SAT stated that SEBI’s ruling has prevented Axis Bank from accessing securities pledged by the broking firm through another account.The SAT’s order came after a SEBI...
The Securities Appellate Tribunal (SAT) has asked the Securities & Exchange Board of India (SEBI) to pass an order within 15 days in the Karvy Broking matter in response to a petition filed by Axis Bank.
The SAT stated that SEBI’s ruling has prevented Axis Bank from accessing securities pledged by the broking firm through another account.
The SAT’s order came after a SEBI directive to the National Securities Depository Ltd (NSDL) in November which prevented Axis Bank from accessing shares pledged with the lender by Karvy Stock Broking Limited (KSBL).
It may be recalled that shares of clients held by Karvy were used by it to borrow through the Power of Attorney (PoA) held by it.
The shares held by more than 83,000 Karvy clients were given back to them after SEBI asked NSDL to do so, forcing lenders -- Bajaj Finance, ICICI Bank, HDFC Bank and IndusInd Bank -- to move SAT and secure an interim relief on further transfers.
However the SAT has refused any immediate relief to top lenders and NSDL's move helped 90% of Karvy's demat account holders get back their shares.
It may be recalled that through an interim order passed on November 22, the SEBI had barred Karvy from taking new clients and also prevented it from using PoAs given by its clients after the brokerage was found to have allegedly misused clients' securities.