Hyderabad police on Thursday arrested two senior executives of scam-hit Karvy Stock Broking Pvt Ltd for allegedly involving in diverting funds raised from banks by pledging clients' securities as collaterals. According to a police press release, Rajiv Ranjan Singh, chief executive officer and G. Krishna Hari chief financial officer of Karvy were arrested basing on a complaint by IndusInd bank.
Leading bourse BSE has also declared Karvy Stock Broking as a defaulter and expelled the brokerage house from its membership after a similar action was taken by the NSE. Investors having any outstanding claims against the brokerage can file their claims with the exchange within 90 days from the date of issue of the notice -- by February 22, 2021 -- the BSE said in a circular on Tuesday.
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".
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.
A case has been registered against Karvy Stock Broking Ltd promoter C Parthasarathy and others for allegedly cheating ICICI Bank to the tune of Rs 563 crore.
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.
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.
The BSE benchmark Sensex can possibly touch 1,00,000-mark in the next six years if the infrastructure cycle is revived quickly by the new government and the corporate earnings grow by 20-25 per cent, claimed a report by Karvy Stock Broking.
Exchanges will have to facilitate a more direct interface between clients and the clearing corporation, bypassing intermediaries such as brokers, under this new proposed framework.
Karvy group's commodity broking arm, too, is facing a liquidity crisis because of some issues related to NCDEX, said people in the know.
From a low of 7,697 in October 2008, Sensex tripled to its current 25,000 during one of the most trying times.
According to a research report by Karvy Stock Broking, "the GDP growth for the second quarter of this fiscal is estimated to drop to nearly three and a half year low of 5.1 per cent."
Stock market analysts on Tuesday termed the RBI decision to hike policy rates by 0.25 per cent as in line with expectations and said they expect another hike in March review of the monetary policy.
In continuation of the interim order dated April 27, 2006 relating to IPO scam, G Anantharaman, whole-time member of Securities & Exchange Board of India passed an interim order on Tuesday.
Curbs on 12 depository participants; Indiabulls to challenge SEBI order.\n
Balaji Rao of Karvy Stock Broking, Samir Chag, CEO of Elegant Equity and Nirav Ashra, Branch Head of Unicon, believe that though retail participation is back in action, small investors are still worried and hesitant to make fresh investments.
ICICI Ventures and Baring Private Equity Asia have picked up around 20 per cent stake in Hyderabad-based Karvy Stock Broking, a leading financial services enterprise, for around Rs 440 crore (Rs 4.4 billion). The acquisition of stake, which adds to the string of big deals in the Indian stock broking industry this year, values the company at Rs 1,760 crore (Rs 17.60 billion), said sources close to the development.
Hemendra Hazari of Karvy Stock Broking believes that government banks will be impacted by rising bond yield because they have a much higher proportion of investments and their durations are higher too.
Ambareesh Baliga of Karvy Stock Broking says he would be comfortable with a 800-1000-point correction to start buying into the markets.
Tech Mahindra listed at Rs 525 on BSE against an issue price of Rs 365. What should investors do with the stock and what are the concerns going forward?
Two midcap banking stocks have been on a roll; Centurion BoP on the news of its merger with Lord Krishna Bank merger, and IndusInd Bank, which might be looking at a foreign buyer.
Ambareesh Baliga would not make fresh investments for long-term.
Experts believe that cement companies will post pretty good numbers in Q1FY07.
Infosys, he is expecting revenues to grow by 8.8 per cent
We see the markets consolidating for the next two months
The total default is said to be in excess of Rs 3,000 crore - making this the largest default by a broker.
Karvy Computershare Pvt Ltd engaged in fraudulent activities with respect to certain initial public offerings in 2005, market regulator Sebi said.
Against the backdrop of Karvy crisis where securities worth Rs 2,300 crore of more than 95,000 clients were transferred into its account, NSE has asked investors to register for online applications provided by depositories for online delivery of securities as an alternative to PoA.
In May 2014, FIIs were net buyers by Rs 20,225 crore (Rs 202.25 billion).
Issuers are currently not comfortable with the bids they have been getting for their bond offerings.
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.
Worries remain on earnings-valuations mismatch, global issues; resolution of the MAT row could be biggest positive trigger
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
A rising rupee is a tailwind for dollar investors.
In case of any grievance, file a complaint with Sebi on its SCORES (Sebi Complaints Redress System) web site, suggests Sanjay Kumar Singh.
Softening rural consumption and the likelihood of weak corporate earnings in the March quarter saw investors dump stocks.
A moderate recovery in Indian factories, exports and investments were probably the main drivers for an increase in overall growth in the quarter through March.
Bull markets need a a charismatic leader and a fancy destination.
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