NEW DELHI: The Securities and Exchange Board of India (Sebi), on Wednesday, cancelled Karvy Stock Broking’s certificate of registration for mis-utilising clients’ funds and securities.
Cancelling the registration, Sebi said Karvy was engaged in transfer of funds from clients’ accounts to its own accounts, which were subsequently transferred to group firms associated with the brokerage house. It had raised funds by pledging clients’ securities without their consent.
“Irrespective of cancellation of Certificate of Registration, the noticee shall be liable for anything done or omitted to be done as a stock broker and continue to be responsible for payment of outstanding fees and dues, if payable to Sebi,” said the Sebi order.