Live
- A Guide to Temperature and Humidity Standards in Data Center Server Rooms
- Gadwal collector briefs on details of voters
- Jupally Krishna Rao takes part in Alampur rallu
- Bharath Prasad files 3rd Nomination
- Baisakh Month: A Time of Auspicious Beginnings and Sacred Festivals
- Oust BJD govt for overall development, says Shah
- Unveiling the Hidden Gems: Surprising Health Benefits of Garlic Peels
- Overcoming Sleep Struggles: A Comprehensive Guide to a Restful Night
- RTC bus hit the auto
- MLA Kuchukula Rajesh Reddy participated in the Birappa festival
Just In
In addition to NSE’s investor protection fund, other market infrastructure institutions (MIIs) also monetised the MF distribution business of Karvy Stock Broking Ltd (KSBL); NSE declared 32 stock brokers as defaulters in the past 5 years for failing to comply with the guidelines
New Delhi: The government on Monday said Rs414.24 crore has been paid to a total of 34,497 clients of Karvy Stock Broking Ltd (KSBL) from the National Stock Exchange's (NSE) investor protection fund till March 2023.
In addition, NSE along with other market infrastructure institutions (MIIs) have also monetised the mutual fund distribution business of KSBL, and funds amounting to Rs 150 crore have been realized and the same is being utilized for distribution to clients of KSBL, Minister of State for Finance Pankaj Chaudhary said in a written reply to Lok Sabha. The case pertains to Karvyunauthorisedly transferring securities of its clients in one of its demat accounts by misusing Power of Attorney (PoA) given to its clients. NSE and BSE suspended trading terminals of KSBL from December 2, 2019 and declared it a defaulter on November 23, 2020 for misusing clients' funds and securities.
Moreover, NSE has declared 32 stock brokers as defaulters in the past five years for failing to comply with the bourse's guidelines. The minister said capital markets regulator Sebi, along with exchanges, conducts regular inspection of brokers based on certain criteria and takes action as per its regulations and bye-laws of the exchanges. Under NSE guidelines, stock brokers are required to fulfill their obligations and should not involve in any misconduct, or unprofessional conduct among others. "The claims of investors in the matter are being dealt with and settled by NSE as per its bye-laws. As on March 20, 2023, an amount of Rs 414.24 crore has been paid to 34,497 clients from Investor Protection Fund (IPF) of NSE," Chaudhary said.
Also, the minister said securities worth around Rs2,000 crore and belonging to 82,559 clients were transferred to fully paid-up clients of KSBL citing Sebi orders passed in November 2019 and November 2020. Further, based on the findings of a forensic audit report and observations of NSE, Sebi initiated enforcement action against KSBL, its directors, CEO and against two group companies of KSBL.
© 2024 Hyderabad Media House Limited/The Hans India. All rights reserved. Powered by hocalwire.com