Markets regulator Sebi’s prompt action against Karvy Stock Broking Ltd (KSBL) has resulted in nearly 83,000 investors getting back their securities, which were illegally transferred by the broker to its own account and were even pledged without any authorisation.
Of these, 95,000 clients, nearly 83,000 of them have got back their securities, which were illegally transferred by the KSBL to its own account. “As per the directions of Sebi and under supervision of NSE, securities have been transferred from the demat account .... named Karvy Stock Broking Ltd to the demat accounts of respective clients who have paid in full against these securities. The number of such clients who have received securities are 82,599,” NSDL said in a circular.
The timely action assumes significance as any delay could have led to invoking of pledge by lenders with whom the broker had pledged the clients’ securities. According to market experts, timely action by Sebi has also averted PMC Bank-like situation. NSE and BSE on Monday suspended Karvy’s trading licence.