Karvy Fintech, which is a Registrar and Transfer Agent (RTA) for mutual funds and a Central Record Keeping Agency (CRA) for the NPS, moved to dissociate itself from the Karvy Group which was suspended by the NSE and BSE from membership today. The Securities and Exchange Board of India (SEBI) has passed an interim order against Karvy Stockbroking barring the firm from taking on new clients over allegations that it diverted client securities to itself and raised money by pledging client securities. Karvy Fintech which was earlier part of the group was acquired by private equity player, General Atlantic approximately a year ago. Karvy Fintech is currently RTA for 23 different mutual funds including Axis Mutual Fund, BNP Paribas Mutual Fund, Canara Robeco Mutual Fund and Mirae Asset Mutual Fund.
Karvy Group Chairman and Managing Director, C Parthasarthy resigned from the board of Karvy Fintech following the SEBI order. General Atlantic, announced the appointment of M.V. Nair as non-executive Chairman of the board of KFin Technologies. M.V. Nair is currently chairman of Transunion CIBIL. It also announced a change in the name of Karvy Fintech to KFin Technologies. Several investors have raised concerns over social media about the safety of their mutual fund units which had Karvy Fintech as the RTA following the SEBI order.