Karvy Broking retains customer funds
MUMBAI/HYDERABAD: Karvy Stock Brokerage not only illegally pledged clients’ shares but also held back their payments for months after investors sold through the troubled brokerage firm, it is learnt. Karvy Stock Brokerage didn’t reply to an email from TOI about customer complaints about the non-transfer of funds to their accounts.
In one case, a US citizen, who unloaded shares worth Rs 3.8 million rupees on September 21, is awaiting payment despite promises from Karvy CEO Rajiv Singh that it would be fully realized. .
More than two months ago, the president of the University Venture Fund and the co-founder of Unitus Capital, Geoff Chester Woolley, who was a Bharat Financial Inclusion (formerly SKS Microfinance) director until his recent merger with IndusInd Bank, sold 27,000 IndusInd Bank shares worth Rs 3.8 Rs. You are still waiting for the income to be credited to your account. I instructed Karvy to sell (those) shares and send the proceeds to my bank account in the United States, Woolley said TOI in an email
On September 21, Karvy Stock Brokerage sold the shares and after deduction of charges was to transfer nearly Rs 3.83 crore to his US bank account. “But the proceeds were never sent. After two weeks of chasing Karvy, they basically went silent,” said Woolley. He said he had dealt with Karvy Stock Brokerage previously also, but had never faced such a problem.
Rs 3.8-crore appears online in my demat account as cash, but does not allow me to transfer funds or buy other securities. That is still the situation today, ”said Woolley, who filed a complaint with Sebi, which has been shared with NSE.
Even after directly contacting Singh and sending a representative to Karvy Stock Brokerage ’s office, all he heard from the broker were promises to pay at a future date, which invariably got postponed to a new date.
In the last email he received from Singh, earlier this week, he was promised that he would be paid before December 25. Unless Santa gives Karvy a Christmas present, I guess Karvy won't pay, Woolley said. Woolley is just one of the thousands of Karvy Broking customers waiting for their payments. Many anxious and unhappy clients have been venting their anger Twitter