The market regulator has cancelled the certificate of registration of Karvy Stock Broking (KSBL) through an order issued on May 31.
The Securities and Exchange Board of India (Sebi) had banned the stock broking company and its promoters from the market for seven years through its order issued on April 28, 2023. This was done for various violations including misappropriation of clients’ securities and diverting the proceeds from pledging them to the stock broker’s associate companies. Meanwhile, it had also been investigating if the violations by Karvy Stock Broking warranted a suspension or cancellation of the Certification of Registration.
KSBL will continue to be liable for any pending dues.
“Irrespective of the cancellation of the Certificate of Registration, the Noticee shall continue to be liable for anything done or omitted to be done as a Stock Broker and continue to be responsible for payment of outstanding fees and dues, if any, payable to SEBI,” the Sebi order stated.
“This Order shall come into force with immediate effect,” it added.
A show-cause notice post investigation into the latter was issued to the stock broker on May 27, 2022, and the broker had been asked to file a reply within 21 days of receipt.
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