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.
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