C Parthasarathy, chairman and managing director of the Karvy Group has resigned from Karvy Fintech, which acts as a registrar and transfer agent (RTA) for the Rs 26-trillion mutual fund (MF) industry. The move follows Sebi order against Karvy Stock Broking for alleged misuse of client funds.
Karvy Group owns about 18 per cent stake in Karvy Fintech, the rest is owned by private equity (PE) major General Atlantic.
A year ago, the PE firm had acquired Karvy group’s stake for around Rs 1,000 crore.
While Sebi order doesn’t bar Parthasarathy from holding board position in market intermediaries, the resignation to assuage concerns of the MF industry and other
“Karvy Fintech is the biggest RTA. Following the Sebi order, several MFs had voiced concerns over the Karvy Group’s association with the company,” said an industry player.