india

Karvy barred from taking new clients

The Securities and Exchange Board of India (SEBI) has barred Karvy Stock Broking (KSBL) from taking new clients over alleged misuse of client funds. Further, the NSE has appointed a forensic auditor to examine in detail the alleged cases of misuse of client funds by the broking entity.

“The Depositories and Stock Exchanges shall initiate appropriate disciplinary regulatory proceedings against [KSBL] for misuse of clients’ funds and securities,” SEBI added.

The SEBI order said the broking firm credited funds generated by pledging client securities in its own account. Further, an amount of ₹1,096 crore was transferred from the firm to its group entity Karvy Realty between April 2016 and October 2019.

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