SAT extends stay on Sebi order on Karvy Stock Broking

Market regulator has charged that the firm had "failed to maintain high standards of integrity and further indulged in manipulation

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Securities Appellate Tribunal today extended the stay on implementing the Sebi order that barred Karvy Stock Broking from taking up new assignment or launching new schemes, till the time the matter is decided by the tribunal.

Capital market watchdog Sebi's ruling was with regard to the IPO scam of 2003-2005.

Earlier in June, SAT had stayed the Sebi order till a hearing today.

Prior to this, the tribunal on April 16 had extended the stay on implementation of the order till June 23.

"Ad interim order granted on April 16, 2014 and continued on June 9, 2014 shall continue till disposal of the appeal," SAT said in a order.

The Securities and Exchange Board of India (Sebi) had charged that Karvy Stock Broking had "failed to maintain high standards of integrity and further indulged in manipulation and malpractices and thereby violated the code of conduct" specified in its Broker Regulations.

The case relates to large-scale irregularities in as many as 21 IPOs during 2003-2005 period.

Sebi had passed the order against Karvy Stock Broking Ltd on March 14 wherein the entity was prohibited from taking up any new assignment or contract or launch a new scheme for a period of 6 months in respect of its business as a stock broker.