Karvy crisis: Sebi gives time to six brokers to wind up client accounts

Sebi wants these brokers to remove the pledges and return the shares to the clients (those who paid the dues)

The Securities and Exchange Board of India (Sebi), in the wake of the Karvy crisis, has given time to at least six brokers to wind up their client securities accounts and submit the progress reports on pledged securities used to raise money from banks and finance firms.

Source said Sebi had identified some brokers, mostly mid-sized ones who had not just failed to separate client shares but raised loans and utilised them in their other ventures.

The inspection report will detail the transactions made outside the brokerage business but assurance has come that the brokers are in the process of meeting the