After Karvy fiasco, brokerages reach out to investors, issue PoA advisories

Karvy is alleged to have gone beyond by using its client securities to raise money for its other businesses, including real estate

The Karvy scandal has led to a crisis of confidence in the Rs 15,000-crore domestic broking industry, with several investors fretting over the safety of their securities in demat accounts.

To assuage concerns, most brokers have or are in the process of reaching out to their clients, clarifying their position on the use of client funds and pledging of securities. At the same time, the National Stock Exchange (NSE) has issued an advisory to investors to remain vigilant with regards to pay-in and pay-outs of shares, and cautioning them over the use of power of attorney (POA). 

The concerns were