Market regulator Sebi on Wednesday suspended the registration certificate of Karvy Stock Broking Ltd (PMS Karvy) as a portfolio manager for one month for flouting regulatory norms.

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In its order, the markets regulator said that Karvy Stock Broking Ltd or PMS Karvy failed to provide certain details in disclosure document, including details of penalties, pending litigation or proceedings and finding of investigation.

In addition, the company mentioned contrary provision in its disclosure document and did not maintain uniformity in the condition of notice period mentioned in the model portfolio agreement regarding termination of agreement with clients.

Also, it failed to appoint appropriately qualified or experienced principal officer as well as compliance officer and failed to rectify the discrepancies in the auditor's report.

Through such acts, PMS Karvy has violated the provisions of portfolio managers rules.

Accordingly, Sebi has directed "the suspension of certificate of registration of the noticee, i.E., Karvy Stock Broking Limited for a period of one month".

The order comes into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in its order.

The order came after the regulator conducted inspection of Karvy Stock Broking Limited (PMS-Karvy), a registered portfolio manager, with respect to its portfolio management activities in December, 2019. The period covered in inspection was from April, 2018 to March 2019.

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