Stock broking scandal: Karvy withdraws appeals against NSE, Sebi in SAT

Troubled Karvy Stock Broking has withdrawn two appeals in the Securities Appellate Tribunal against the NSE and capital markets regulator Sebi. Both the appeals were filed by Karvy following interim orders against it by each of the two entities late last year.

In November last year, it was discovered that Karvy had pledged clients' shares worth over Rs 1,000 crore it was holding on behalf of clients through power of attorneys without consent for group activities.

Sebi had banned the Hyderabad-based broking house, while the NSE had also suspended its membership. Karvy had appealed in the SAT against these orders.

In an order passed on Tuesday, the SAT presided over by Justice Tarun Agarwala, and members CKG Nair and Justice M T Joshi, said that Karvy is withdrawing appeals against NSE and Sebi, and dismissed both the appeals.

According to people in the know, both the orders were interim in nature and Karvy has decided to wait for the final orders in both the instances before deciding on a future course of action.