HYDERABAD: Hyderabad-based Karvy Financial Services on Monday dismissed reports of a full-scale financial crunch and clarified that its troubles were limited to its commodities broking business.
Investors, however, complained payout delays stretching at least up to a month and requested SEBI and the finance ministry to intervene.
On its part, Karvy said some of the payout issues have long been addressed, but investor complaints continued to pour in through Twitter on Monday.
According to Karvy, its financial woes started due to non-payment of dues from clients while trading in castor seeds contracts via Karvy Comtrade and that Karvy Stock Broking was safe and sound.
“These pertain to a few customers, from which the total amount that is now collectable is around Rs 5 crore. The amount involved, given the size of Karvy, is small,” it added.
Playing down media reports pointing to liquidity issues, it said, “Wherever a few issues have been raised, we have immediately responded with confirmation on the details of payments made.”
While some customers received payments, Karvy said the amounts were insignificant and that there have been repeated tweets to create panic.
For instance, the smallest amount pending was as little as Rs 122 while others were to the tune of Rs 1.6 lakh.