EEB and NSE suspend commercial license of Karvy Stock Broking
NEW DELHI: The main BSE and NSE stock exchanges are suspended on Monday Karvy Stock Broking Commercial license of Ltd for all segments due to non-compliance with the regulatory provisions of the packages. The measure comes after Sebi, through an order approved on November 22, prohibited Karvy from taking new clients with respect to its stock brokerage activities and also prevented him from using the power of attorney (PoA) granted by clients after that it was discovered that the broker has allegedly abused customer values
In two separate circulars, the bourses announced that they have suspended Karvy Stock Broking Ltd with effect from December 2, 2019 due to non-compliance of the regulatory provisions of the exchange.
The BSE said that it has deactivated Karvy's commercial terminals in the stock and debt segment and put them in the risk reduction mode in stock derivatives, currency derivatives and raw materials segment.
The Sebi board of directors had arrived after the National Stock Exchange sent a preliminary report on the breaches observed regarding the commitment/misuse of customer values by Karvy.
The preliminary report of the exchange is the result of Karvy's limited-purpose inspection conducted by her on August 19, which covers a period from January 1 onwards, Sebi said in his order.