The National Stock Exchange (NSE) has declared Karvy Stock Broking Ltd as defaulter and has revoked the membership effective from Monday Market Closing.
“All members are hereby informed that the Karvy Stock Broking has been expelled from the membership of the Exchange under Rules 1 and 2 of Chapter IV of the NSEIL Rules and has been declared as defaulter under provision 1 (a) of Chapter XII of Exchange Bye laws w.e.f. November 23, 2020, after close of market hours,” NSE said in the media release on November 23rd 2020.
In November 2019, Karvy Stock Broking had transferred securities worth ₹2,300 crore in to its account by misusing power of attorney given by its clients. This fund was later used for other personal purpose such as Karvy Reality Ltd.
On 17 November NSE said that the funds and securities worth ₹2,300 crore belonging to about 2.35 lakh investors of Karvy Stock Broking Ltd have been settled so far.