HYDERABAD: Following the catastrophic blow from SEBI last month, Karvy Stock Broking on Tuesday decided to restructure its businesses, rejigging management and raise funds to ensure operational continuity.
The company, which was accused of misusing clients’ securities, also said that it was improving its overall governance and functioning across the group companies.
First, all Karvy group firms will be categorised into either financial or non-financial services businesses.
The company has roped in career banker Amitabh Chaturvedi, who used to head private sector lender Dhanlaxmi Bank, as the company’s group chief executive to head financial services. It’s unclear who will head Karvy’s non-financial business.
The restructuring will see stockbroking, wealth management, commodities trading and investment banking among others coming under financial services, while non-financial services will include data management services, data analytics, market research and allied businesses.
Chaturvedi hinted at fundraising plans and said the leadership team will work on strengthening the brand. “The leadership team will work on making the brand stronger and with fund raising we shall see it reaching new heights,” said Chaturvedi, who has been mandated to overhaul the governance processes and ensure best practices.
DRT proceedings were not wholly stayed: ICICI
ICICI Bank on Tuesday clarified that the Telangana High Court neither stayed the Debts Recovery Tribunal (DRT) proceedings as a whole nor stayed the order asking Karvy to deposit sufficient security covering the bank’s dues within 15 days. “Accordingly, DRT orders requiring the Defendants (Karvy) to deposit sufficient security and imposing a non-disposal injunction on the Properties have been upheld by the High Court, and continue to be binding on the Defendants,” the bank said. It added that the bank will challenge the HC order on appointment of the Advocate Commissioner to take posse-ssion of all Karvy properties.
It may be noted that the DRT order passed on December 9, asked Karvy to deposit securities against ICICI’s dues within 15 days, failing which their properties will be attached. Karvy was also restrained from alienating, transferring, encumbering or creating any form of third-party interest upon the properties. Besides, based on ICICI’s plea seeking travel restraint against Karvy’s senior management, DRT said that notices be served on them.