Bajaj Finance challenges SEBI decision on Karvy: 'Have right to pledged shares'

Bajaj Finance has contested the decision of Securities and Exchange Board of India (SEBI) to return to Karvy’s clients the securities that the broking house had illegally pledged to raise money for itself.

The company today moved the Securities Appellate Tribunal (SAT), claiming that it has right to the pledged securities and that SEBI was wrong in returning the securities to accounts of Karvy’s clients.

Bajaj Finance made SEBI and Karvy party to the case. SAT will hear the matter on December 3.

The Karvy case came to light after the broking firm defaulted on payouts to clients, and it emerged that it had used client securities to raise money to trade – some of which had gone bad. Moneycontrol broke this story.