The latter is facing a liquidity crunch as some of its commodity trading clients have defaulted on payments after incurring huge losses on trades in castor seed contracts, sources told Moneycontrol
Investors have taken the social media route to complain to the Prime Minister’s Office (PMO), Finance Ministry and markets regulator Securities and Exchange Board of India (SEBI), seeking payouts from Hyderabad based-financial services group Karvy.
The latter is facing a liquidity crunch as some of its commodity trading clients have defaulted on payments after incurring huge losses on trades in castor seed contracts, sources told Moneycontrol.
The payments contagion now seems to have spread with other investors complaining that Karvy is not making payments.
@KarvyFintech Despite requesting transfer of existing funds from my trading account (payout), why it is not being done on the pretext that there are server issues or technical glitches. Is there some financial mismanagement at Karvy and small investors funds are being swindled ?
— Dipak Mundra (@DipakMundra) November 10, 2019
Other investors to have complained:
@SEBI_India @KarvyStock this is really disheartening for every customer of karvy as they hv broken our trust my id is 681093 n im from pune hv made several payout request but none hv been successful is karvy facing sum serious issues pls help— Bindiya Shah (@BindiyaShah5) November 11, 2019
@SEBI_India M/s Karvy stock broking is not processing our pay out requests . For last 20 days they are cancelling my payout request. FRAUD at Karvy happening.
— MKR (@MKR27571450) November 14, 2019
@KarvyStock @FinMinIndia @PMOIndia on 8th Nov and 12 th November I have put payout request for my trading code 435702. Till today I have not received it. I have called customer care and RM 100 times but no action. What's going on in India after BMA now is it Karvy on the same way— gitesh (@giteshyeole) November 16, 2019
Karvy client # 681002. Massive payout problem.12 days over for payout request of Rs. 15.79 Lakhs on 30th Oct. My Karvy account has 16 lakhs. Followed with Karvy Pune and VP at HO. No response. Really afraid.
— Satish PhakadePawar (@satishpp1) November 11, 2019
Following investor complaints, Karvy tweeted that most issues have been addressed.
@Ajaystweet Can u ask ur jokers in RMS team to help me place payout request? My funds are lying idle but your system isn't allowing payout. @MrMotilalOswal @Raamdeo @MotilalOswalLtd @AashishPS @ZeeBusiness @CNBCTV18Live @BloombergQuint @AnilSinghvi_ @_nirajshah @_anujsinghal— GANESH MODAK (@ganeshmodak) November 11, 2019
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We have recently noticed that there were instances of payout issues posted on Twitter by our customers. Most of the impacted customers have been contacted and the issue has been addressed and those who have any issues may contact us on 040 3321 6400.
— KarvyStock Community (@KarvyStock) November 17, 2019