Last updated: 26 Nov, 2020 | 08:27 am
The National Stock Exchange (NSE) has declared Karvy Stock Broking Ltd as a defaulter and scrapped its membership. Karvy failed to comply with NSE guidelines meant for stock brokers. Stockbrokers are required to adhere to the rules and not involve in any misconduct.
In November 2019, Karvy had transferred securities worth more than ₹2,300 crore in to its account by misusing power of attorney given by its clients. The company had indulged in malpractice of selling clients securities, and transferring proceeds to related party businesses, such as Karvy Realty Ltd.
How much has been returned to investors?
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) had already suspended Karvy's trading license in December last year. Sebi had barred the firm from taking on new clients and limited its use of Power of Attorney for its existing clients.
In case your amount is still stuck, do not panic. NSE had said that it is making all efforts to focused on the settlement of small investors.
How to safeguard your money from a karvy-like fraud in the future?