BSE also kicks out Karvy Stock Broking, says investors can seek help

Hyderabad: A day after the National Stock Exchange (NSE) expelled the scam-tainted Karvy Stock Broking Ltd (KSBL) and declared it insolvent, the Bombay Stock Exchange followed suit.
In a circular issued late Tuesday evening, the ESB said it had also expelled KSBL and declared it in default with effect from November 24, 2020.
The BSE has also advised investors with pending claims against KSBL to file their claims with the stock exchange within 90 days of the publication of the notice, which is February 22, 2021, to be considered eligible for compensation. up to Rs 15 lakh from the Investor Protection Fund (IPF) as per Sebi standards.
“Eligible claims filed before the end of the aforementioned specified period would be considered for compensation from IPF…to the maximum extent of Rs15 lakh per customer,” the BSE said in its circular.
The ESB said investors can either lodge their complaints with its relevant regional investor centers or through its website under Electronic Complaints Registry.
Sebi also issued a confirmatory order on Tuesday stating that KSBL, through its actions relating to Sebi’s ex parte order issued in November 2019, accepted his wrongdoing because he did not take the opportunity to present his case, including by the through a personal audition with Sebi. officials.
Sebi’s order stated that on the eve of each hearing date, KSBL would request an adjournment citing reasons such as “the Covid-19 pandemic, heavy rains in Telangana, the illness of its chairman, the illness of the buyer, etc.”
KSBL had, for several years, transferred its clients’ securities to its own demat account without their permission and had illegally pledged them to raise funds which were eventually diverted to group companies such as Karvy Realty.

About Author

Comments are closed.