The Enforcement Directorate (ED) on Thursday said it has arrested Karvy Stock Broking Limited (KSBL) CMD C Parthasarathy and group CFO G Krishna Hari in connection with a money laundering investigation linked to alleged diversion of clients' securities of over Rs 2,873 crore. The agency produced the two-- already lodged in central jail, Bengaluru after being arrested by the police-- before a special Prevention of Money Laundering Act (PMLA) court in Hyderabad on January 20 and on January 25 it remanded them to four days of ED custody from January 27-30, it said in a statement. The ED case, filed under the criminal provisions of the PMLA, is based on multiple Telangana Police FIRs filed by the HDFC Bank, few other banks and investors alleging clients' securities were illegally diverted by Karvy Stock Broking Ltd and these were later pledged with banks and non banking financial companies (NBFCs) for loans which were later "defaulted".
Karvy group's commodity broking arm, too, is facing a liquidity crisis because of some issues related to NCDEX, said people in the know.
Karvy Computershare Pvt Ltd engaged in fraudulent activities with respect to certain initial public offerings in 2005, market regulator Sebi said.
Capital markets regulator Sebi has penalised stock exchanges -- BSE and NSE -- for "laxity" on their part in detecting misuse of clients' securities worth Rs 2,300 crore by Karvy Stock Broking Ltd (KSBL). In two separate orders, the Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 3 crore on BSE and Rs 2 crore on NSE. The matter relates to KSBL misutilising client securities worth Rs 2,300 crore, belonging to more than 95,000 clients, by pledging them from just one demat account. The funds raised against the pledge were used by KSBL for itself and its group entities.
What's required is proper implementation of the rules and better coordination between market intermediaries such as stock exchanges and clearing members who play a key role in monitoring brokerages.
After considering the facts and circumstances of the case including enormity of the prima facie violations observed against Karvy, Sebi in an order passed late night Friday said it would not be prudent to allow the use of PoA by Karvy given to it by its clients.
The wealth of individuals in the country is expected to double to Rs 1.79 lakh crore (Rs 1.79 trillion) in the next four years, according to a report by Karvy Wealth.
The Sebi is currently is in the process of selecting an In-Person Verification Agency to conduct face-to-face verification of an estimated three crore bondholders of two Sahara group firms, by checking their identify and address proofs.
Individual wealth of Indians is expected to triple by financial year 2016 to Rs 249 lakh crore.
Madhabi Puri Buch, the first female chairperson of Sebi, doesn't plan to rest on her laurels in her third and final year in office and has set out an ambitious goal, such as moving towards a same-day and instantaneous settlement cycle for the secondary market.
Do you have Budget related queries? Ask Finance Expert Ambareesh Baliga.
'...similar to the 2008 global financial crisis, the 2012 taper tantrum, or the 2018 midcap crash.' 'This could lead to a substantial decline in activity and revenues for the broking industry.' 'When this will happen is uncertain, but as brokers, we must be prepared for such a downturn.'
The National Stock Exchange (NSE) has made a fresh attempt at settling a regulatory investigation into the misuse of Trading Access Point (TAP) software at the bourse. The Securities and Exchange Board of India (Sebi) rejected a similar application in 2022. "NSE and its employees have filed a consolidated settlement application dated May 4, 2023, with Sebi.
Eleven years on, while 80% of scam-hit investors have been fully compensated, more than 50% of the sum is yet to be distributed.
The Sensex closed down 308 points at 24,894 and the Nifty has lost 96 points at 7,559.
In just three years the online real estate portal has managed to raise about Rs 270 crore.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The target announced is 13.6 per cent higher than that set last year and 145.4 per cent higher than the revised target for 2013-14.
Those who have crossed 50 must show the greatest urgency. They need to achieve a corpus that can sustain them and their spouses for at least 25-30 years after retirement.
HR guru Mayank Rautela has some suggestions.
In May 2014, FIIs were net buyers by Rs 20,225 crore (Rs 202.25 billion).
The number of equity schemes rose to 562 from 519 two years ago. Equity NFOs, in fact, have mopped up more than Rs 16,000 crore since 2018 - 2.7 times the Rs 5,948 crore collected in the preceding three calendar years.
Worries remain on earnings-valuations mismatch, global issues; resolution of the MAT row could be biggest positive trigger
Experts say a lot of new wealth is being generated by promoters selling their stake.
Thousands of retail investors are reaping the benefits of the disruption that the latest technologies have brought to the equity market. Brokerage firms are aggressively investing in technologies such as artificial intelligence, machine learning, big data and analytics, social media, chatbots, virtual assistants and so on.
'A bold, progressive step forward,' Kotak Mahindra Bank CEO Uday Kotak said of Nirmala Sitharaman's corporate tax breaks.
Ajit Mishra, Vice President, Research, Religare Broking, answers readers' queries on stocks they own or want to buy.
The regulator's concern arises from several recent instances.
With response tepid so far from domestic investors, these funds might soon approach FIPB for approvals.
Sanjay Kumar Singh tells you what to watch out for when buying insurance and investing in MFs online.
The industry's reactions to the Budget have been mixed.
'What has he done for the state and the people?' 'The state has witnessed extraordinary problems. Where was he then?' 'Has he spoken about any issues or taken a stand?'
'It has been a quick evolution.' 'That is because he saw the big names playing in the IPL and he played alongside them; that transformed him as a batsman.' 'I would say now he is perfect.'
The online world is driven by convenience, simplicity and speed.
Ever since he saw him bat for the first time, as a tiny 11-year-old at his academy, Mangalore-based Karnataka State Cricket Association coach Samuel Jayaraj knew KL Rahul was destined for bigger things.
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