Karvy files another plea against Central govt order

Karvy, in its affidavit, contended that the Ministry of Corporate Affairs has taken the decision without following due process of law, without doing proper enquiry.

Last November, SEBI barred Karvy from opening new trading accounts based on an NSE inquiry alleging that the brokerage raised money pledging clients’ shares and transferred it to its own account.

HYDERABAD: Karvy Stock Broking Limited (KSBL) company on Wednesday filed a fresh petition in the Telangana High Court challenging the decision of Ministry of Corporate Affairs in ordering a probe by the Serious Fraud Investigation Office (SFIO) into company’s alleged financial irregularities.

On Tuesday, the Court refused to entertain Karvy’s plea saying that the Central government has already taken a decision on the issue and granted liberty to the company to file another petition challenging the impugned order.

Karvy, in its affidavit, contended that the Ministry of Corporate Affairs has taken the decision without following due process of law, without doing proper enquiry and without giving an opportunity to be heard and passed the impugned order in violation of principles of natural justice.