Karvy a tip of iceberg: Lens on 3 dozen brokers for Rs 10k-crore fund abuse

Market regulator Securities and Exchange Board of India (Sebi) has trained guns on more brokers for indulging in the practice of using clients’ shares.

Sources say the issue is not limited to just Karvy Stock Broking, with over three dozen more brokers under lens for misappropriating client funds to the tune of Rs 10,000 crore.

The issue has come to light after several brokers missed the August 31 deadline set by Sebi for returning client funds. Market players said the issue could snowball into a bigger problem if these brokers are not able to return client money or have incurred