Sebi cancels registration certificate of Karvy Ltd; firm to still pay dues

Sebi had banned the Karvy and its promoters from the market for seven years through its order in April this year

Securities and Exchange Board of India (Sebi), India's market regulator, has cancelled the certificate of registration of Karvy Stock Broking (KSBL). Sebi issued this order on May 31, Wednesday.

"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," the Sebi order stated.

“This Order shall come into force with immediate effect,” it added.

Sebi had banned the Karvy and its promoters from the market for seven years through its order issued on April 28, 2023. This was done for various violations including misappropriation of clients’ securities and diverting the proceeds from pledging them to the stock broker’s associate companies. 

"The Depositories i.e. NSDL and CDSL, in order to prevent further misuse of clients’securities by KSBL, are  hereby directed not to act upon any instruction given by KSBL in pursuance of power of attorney given to KSBL by its clients, with immediate effect", the order further said.

Karvy will continue to be liable for any pending dues.