Here's an explainer on what the Karvy scam is all about, how banks have been affected and who's at fault.
Karvy, a well-known stock broking company, was found violating market regulations to obtain loans from banks and NBFCs. It allegedly used shares of clients as collateral and diverted funds to its real estate subsidiary.
Initial findings suggest that securities worth Rs 2,300 crore were pledged by Karvy to get loans and as many as 95,000 clients have been affected. Now, Karvy has been barred by the market regulator from accepting new clients and from trading on exchanges.Watch this video to find out how Karvy went from broking to broke.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.