Karvy Stock Broking case: Big action taken against company, BSE, NSE suspend trading
After being in the news for days for all the wrong reasons, Karvy Stock Broking has been slapped with a suspension of trading order. Now, investors cannot trade in shares through Karvy Stock Broking.
After being in the news for days for all the wrong reasons, Karvy Stock Broking has been slapped with a suspension of trading order. Now, investors cannot trade in shares through Karvy Stock Broking. Trading license of Karvy Stock Broking has been suspended by BSE and NSE exchanges after getting the orders from SEBI. A circular issued by the exchanges mentioned that Karvy wasn't following the rules and regulations of SEBI, hence the license got suspended. Other exchanges might take action against Karvy Stock Broking. Here's the latest update by Zee Media Correspondent, Brijesh Kumar:
Here are the actions taken by exchanges against Karvy Stock Broking:
Trading member license has been suspended by BSE, NSE
Action was taken after SEBI's order
Trading terminal of Karvy halted after SEBI's order
Investors can get their accounts opened through other brokers
Investigation against Karvy for not implementing SEBI's rule
Equity Cash, F&O, Currency, Debt, Commodity Trading stopped
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Alleged for keeping investors share in mortgage
Shares of Rs 2300 crores transferred without client's permission
There's a possibility of misusing the shares of 95,000 investors
Forensic Audit procedure against Karvy
EY and NSE is implementing a Forensic Audit procedure
Things Found during investigation:
Allegedly transferred Rs 1096 Crore to real estate business
Rs 485 Crores of shares from the shareholders have been sold to group companies
Rs 162 Crore transferred to the group related companies
Rs 116 Crore rupees took from the closed accounts of shareholders
Importance of Karvy in Market
3 lakh active client out of 12 Lakh client
Trading Daily average is 20-25 thousand clients
15000-18000 are connected with Online Trading
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09:50 AM IST