Mumbai: The National Stock Exchange of India (NSE) has suspended Karvy Stock Broking Ltd's trading licence due to non-compliance of the regulatory provisions of the Exchange.
Similarly, the Bombay Stock Exchange (BSE) has also deactivated trading terminals of the Karvy Stock Broking Ltd in Equity and Debt segments.
To this effect, a circular was issued by the BSE on Monday. It said, "Trading Members of the Exchange are hereby informed that pursuant to NSE Circular No.62/2019 dated December 2, 2019 informing that they have suspended M/s Karvy Stock Broking Ltd”.
The move comes after Sebi, through an order passed on November 22, barred Karvy from taking new clients in respect of its stock broking activities and had also prevented it from using the power of attorney (PoA) given by clients after the broker was found to have allegedly misused clients' securities.
SEBI's directive had come after the National Stock Exchange forwarded a preliminary report to it on the non-compliances observed with respect to pledging/misuse of client securities by Karvy.
The exchange's preliminary report is the result of the limited purpose inspection of Karvy conducted by it on August 19, covering a period from January 1 onwards, SEBI had said in its order.
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