The National Stock Exchange (NSE) has declared Karvy Stock Broking in default for non-compliance with stock exchange regulations.
In addition, Karvy Stock Broking was expelled from the membership of the exchange, the NSE said in a circular.
The decision, effective from November 23, was made because the broker failed to comply with NSE guidelines, he added.
Under the guidelines, securities dealers are required to fulfill their obligations and must not engage in misconduct or unprofessional conduct, among other things.
Previously, Karvy had transferred securities of clients to his demat accounts without authorization by abusing the powers of attorney (power of attorney) given by his clients.
In November 2019, market regulator Securities and Exchange Board of India (Sebi) banned Karvy from taking on new brokerage clients after it discovered that the brokerage company had allegedly misused clients’ securities to the tune of more than Rs 2,000. crore. The company abused customer guarantees for its own transactions.
In addition, Karvy was deactivated (removal of marketing rights) by the NSE in December 2019.
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