SEBI extends deadline for Karvy Stock Broking investors to file claims by December
SEBI extends deadline for Karvy Stock Broking investors to file claims by December
The firm raised huge funds from financial institutions but diverted them, breaking regulatory norms
The Securities and Exchange Board of India (SEBI) has extended the deadline for investors of the defaulted broker Karvy Stock Broking Ltd (KSBL) to file their claims until 31 December 2025.
KSBL was declared a defaulter by the National Stock Exchange (NSE) on 23 November 2020, following which, investors were asked to submit claims against the broker by 2 June 2025.
The market regulator has advised investors to file their claims before the deadline, if not already done. For assistance, they can approach the NSE on its toll-free number 1800 266 0050 or e-mail to defaultisc@nse.co.in.
In April 2023, SEBI barred KSBL and its CMD, C Parthasarathy, from the securities market for seven years and imposed a penalty of Rs.21 crores for misappropriating clients' funds by misusing the Power of Attorney.
The action followed a massive asset mobilisation drive by KSBL, raising huge funds from financial institutions. It pledged clients' securities, with promises of paying interest.
However, the funds were misappropriated and diverted to entities connected with the company. It led to defaults in settling client securities and funds and violated regulatory norms.
