Karvy fiasco: SAT grants no relief to banks on wrongly pledged securities

Tribunal raps lenders for taking time to approach it, says plea to recall shares transferred to about 83,000 of Karvy's clients or to freeze them is "untenable"

The Securities Appellate Tribunal (SAT) on Wednesday denied any relief to private-sector lenders HDFC Bank, IndusInd Bank and ICICI Bank, which had moved it after the client securities that Karvy Stock Broking had pledged by misusing powers of attorney were restored to affected clients.

The two-member bench chaired by C K G Nair and Justice M T Joshi said that appellants' plea to recall the shares transferred to close to 83,000 of Karvy's clients or to freeze these securities was "untenable".

"... without going into the merit of the case, we are of the considered