SEBI Advises Karvy Stock Broking Investors To File Claims Before 2 June
SEBI Advises Karvy Stock Broking Investors To File Claims Before 2 June
The firm was declared a defaulter by the National Stock Exchange on 23 November 2020
The Securities and Exchange Board of India (SEBI) has urged investors of the defaulted company, Karvy Stock Broking Ltd, (KSBL) to file its claims before the 2 June deadline.
SEBI stated, "As the deadline for submitting investors' claims against default broker Karvy Stock Broking Ltd is approaching, investors are advised to take note and are urged to file their claims before the deadline, if not done already."
It added that for assistance, they could approach the NSE by calling its toll-free number 1800 266 0050 (select IVR option 5) or by emailing at defaultisc@nse.co.in.
In April 2023, the market watchdog barred KSBL and its CMD, C Parthasarathy, from the securities market for seven years. It imposed a Rs.21 crore penalty for misappropriating clients' funds by misusing the Power of Attorney given to the broking firm.
The action emerged from KSBL’s massive asset mobilization, wherein it raised huge funds from financial institutions. It pledged clients' securities, with promises of paying interest.
However, instead of keeping its word, the company diverted the funds to entities connected with it. that led to defaults in settling client securities and funds, violating SEBI’s regulations.
