What’s the case related to Karvy, which was declared a defaulter by NSE?


Team Udayavani, Nov 26, 2020, 11:14 AM IST

The National Stock Exchange has declared Karvy Stock Broking Ltd as a defaulter and expelled it from its membership.

Once a trading member is declared a defaulter, a stock exchange can pay the clients from the investor protection fund (IPF) kitty.

Karvy had transferred securities worth ₹2,300 crore into one of its Demat accounts by misusing the PoAs given by its clients. Karvy had allegedly misused client accounts without informing them, or reporting to the depository or the stock exchange.

The company is alleged to have misused securities belonging to its clients. The total default is said to be in excess of Rs 3,000 crore, making this the largest default by a broker.

According to Business line, In November last year, SEBI had barred Karvy from taking in new clients after it found that the broker had transferred shares worth more than ₹2,300 crore of over 95,000 clients to its own account and further used it to avail bank loans.

Last week, the NSE said it had settled client claims worth ₹2,300 crore. However, several thousand investors are still claiming money from Karvy, regulatory officials said.

Busines Standard reported, the current shortfall is between Rs 400 crore and Rs 800 crore. “There is a dispute between banks and Karvy over securities pledged. If the court rules in favour of Karvy, then the extent of default could be about Rs 400 crore

Around, 90,000 clients of Karvy are yet to get their dues. Of this about, 7,000 have come forward to claim about Rs 230 crore

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Ahead of Delhi polls, Kejriwal helps women, elderly register for welfare schemes

Cong presses for Shah resignation over Ambedkar remark, announces protests against ‘anti-Dalit’ BJP

Centre scraps ‘no-detention policy’ for classes 5 and 8 students who fail to clear year-end exams

Mumbra woman gets life in jail for killing son’s wife, his mother-in-law

Indian buyers still prefer physical dealerships over online mediums to purchase cars: Survey

Derogatory remarks row: Karnataka legislative Council chairman says no recordings available

‘Send Sheikh Hasina back to country’: Bangladesh writes to India

Related Articles More

December 21: Everything about the ‘Winter Solstice’

World Meditation Day 2024: Celebrating inner peace and well-being

Mangaluru: Vincent’s ‘Santa Claus’ ride marks 25 years of spreading Christmas cheer

I made him tabla, he made my life: Zakir Hussain’s tabla maker

Manipal-Konaje Knowledge and Health Corridor stuck in limbo

MUST WATCH

Tulunadu Daivaradane

Feeding Birds with Creative Paddy Art!

Areca Nut

HOTEL SRI DURGA BHAVANA

Harish Poonja


Latest Additions

Belagavi: Assistant mahout killed by temple elephant

Ahead of Delhi polls, Kejriwal helps women, elderly register for welfare schemes

Alnavar: TT-Canter truck collision claims three lives

Union minister condemns disruption of Christmas celebration in Kerala school

Cong presses for Shah resignation over Ambedkar remark, announces protests against ‘anti-Dalit’ BJP

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.