Around December 2020, Arcadia began to default on its repayment obligations, following which Kotak Mahindra Bank recalled the loan facility
The Securities Appellate Tribunal (SAT) has quashed orders passed by the National Stock Exchange (NSE) and Central Depository Services (CDSL) directing Kotak Mahindra Bank not to invoke shares pledged by Arcadia Share & Stock Brokers.
In February 2021, the NSE had restrained the private sector lender from invoking and selling securities pledged by the brokerage until the rightful ownership of the securities was ascertained. The CDSL had then put in place a debit freeze, prohibiting Kotak Mahindra Bank from invoking the pledged shares and recovering its dues. The bank then moved SAT, challenging this.
The SAT in its order said,
First Published: Aug 30 2022 | 2:07 PM IST