Karvy Stock Broking’s Registration Cancelled By Sebi

The Securities and Exchange Board of India (Sebi) has cancelled the certificate of registration of Karvy Stock Broking (KSBL) through its order issued on 31 May, 2023.

According to reports, Sebi had banned the stock broking company and its promoters from the market for seven years through its order issued on 28 April, 2023. This move came after various violations including misappropriation of clients’ securities and diverting the proceeds from pledging them to the stock broker’s associate companies were reported to Sebi. 

It was also looking into whether Karvy Stock Broking's offences called for the Certification of Registration to be suspended or revoked.

KSBL will continue to be liable for any pending dues.

The Sebi order states - “Irrespective of the cancellation of the Certificate of Registration, the Noticee shall continue to be liable for anything done or omitted to be done as a Stock Broker and continue to be responsible for payment of outstanding fees and dues, if any, payable to SEBI. This Order shall come into force with immediate effect.” 

The stock broker was issued a show-cause notice post investigation on 27 May, 2022, which asked the broker to file a reply within 21 days of receipt.