SEBI is the regulator of stock exchanges of India. And it only takes all the decisions regarding the financial market of India. If someone is breaking the laws and is not obeying them then it has full authority to ban the company from the exchange. And we can see the same in recent news. SEBI recently ban the company Karvy Stock Broking.
Now, after the ban, the company Karvy Stock Broking can not take new clients. And stock exchanges will now take action against the company. Not only the company but also the directors of the company. The company is now a defaulter in the eyes of NSE. Furthermore, it is answerable for ousting the broking house from the participation of the trade for rebelliousness with different administrative arrangements.
Also, not only this but now it can’t divide any of its assets also. If Karvy Stock Broking wants to do so it has to take permission from NSE. This all started after an audit report that came recently.
On November 22, 2019, Sebi restricted Karvy Stock Broking from taking new business. It was for supposedly misusing cash. And also for protections having a place with its financial specialists to finance its land arm, Karvy Realty. The headings gave against KSBL in the ex-parte request passed in November 2019. And those are working against it to date, Sebi said in the last request. Karvy neither documented any answer for the renouncement of a between time request or not to affirm the interval heading nor profited chance of hearing, Sebi said.
Official Statement Regarding Karvy Stock Broking
In the different letters looking for a suspension, Sebi said KSBL made entries that it is moving protections and assets to its customers.“Such letters and conduct of KSBL show it admits wrongdoing, as alleged in the ex-parte order and therefore, has been taking the steps to remove the effects of its wrongdoing such as requesting more time so as to return the funds/securities to its clients whose securities were unauthorisedly pledged by KSBL,” it said.