NSE suspends Karvy Stock Broking for non-compliance1 min read . Updated: 02 Dec 2019, 10:10 AM IST
- NSE's move is effective from today
- Sebi had barred Karvy from taking new clients with respect to stock broking activities for alleged misuse of clients securities
NEW DELHI : The NSE or National Stock Exchange of India Limited today suspended the Karvy Stock Broking Limited for non-compliance of the regulatory provisions of the exchange in capital market, futures and options, currency derivatives, debt, MFSS and commodity derivatives segments. The suspension is effective from today, NSE said in a statement.
Earlier, capital market regulator Sebi had barred Karvy from taking new clients with respect to stock broking activities for alleged misuse of clients' securities.
The action followed NSE forwarding a preliminary report to Sebi on the non-compliances observed with respect to the pledging/misuse of client securities by Karvy Stock Broking (KSBL).
The exchange's preliminary report is the result of the limited purpose inspection of Karvy Stock Broking conducted by it on 19 August, covering a period from 1 January onwards, Sebi had said in an order.
Apart from prohibiting the entity from taking new clients in respect of its stock broking activities, Sebi had directed NSDL and CDSL not to to act upon any instruction given by Karvy Stock Broking in pursuance of power of attorney given by its clients.
(With Agency Inputs)