SEBI barred Karvy Stock Broking from taking on new clients and prevented it from using the Power of Attorney (PoA) given by clients after the broker was found guilty of having misused the securities of its clients.
The Securities and Exchange Board of India (SEBI) has sought more time from the Securities Appellate Tribunal (SAT) to pass an order on the plea filed by Bajaj Finance, reported ET Now.
SEBI barred Karvy Stock Broking from taking on new clients and prevented it from using the Power of Attorney (PoA) given by its clients after the broker was found guilty of having misused their securities.
Bajaj Finance was unable to access its pledged shares following the SEBI order. Hence, the aggrieved lender moved the SAT against the order. Following this, the SAT, earlier this month, gave the markets regulator time till December 10 to pass an order with respect to the aforementioned plea.
Karvy has allegedly transferred clients' securities worth around Rs 2,800 crore illegally, which prompted SEBI to forbid the broker from taking on new clients. Of this amount, Bjaj Finance has an exposure of Rs 345 crore, Mint reported.The broker also had its trading licence suspended by the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange (BSE) for all segments, following non-compliance with the norms laid down by the exchanges and SEBI. Thereafter, MCX and MSEI also suspended Karvy's trading licence.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.