Karvy crisis: Bankers raise concern with NSE and Sebi over exposure

Karvy's companies have taken close to Rs 2,900 crore from banks, including ICICI Bank, HDFC Bank, and Lakshmi Vilas Bank

Banks and financial companies including ICICI Bank and HDFC Bank have met senior officials of the stock exchanges and raised concern over their exposure to Karvy’s companies, said two people privy to the development. The bankers have discussed the matter and ascertained the knock-on effects of the order against the broking house by the Securities and Exchange Board of India (Sebi) last Friday.

Sebi barred Karvy Stock Broking (KSBL) from taking on new clients over the alleged misuse of clients’ securities.

According to sources, the banks wanted to know the magnitude of the problem and how far it was from default. “The