After ban from markets for 7 years, SEBI cancels Karvy Stock Broking's registration

The Indian market regulator SEBI has cancelled the certificate of registration of Karvy Stock Broking on 31st May. Earlier on 28th April, SEBI had also banned the firm and its promoters from markets for 7 years.

The stock broking company was banned due to various violations including misappropriation of clients’ securities and diverting the proceeds from pledging them to the stock broker’s associate companies.

As per the SEBI order, the company will be liable for anything done or omitted to be done as a Stock Broker and continue to be responsible for payment of outstanding fees and dues.

“Irrespective of the cancellation of the Certificate of Registration, the Noticee shall continue to be liable for anything done or omitted to be done as a Stock Broker and continue to be responsible for payment of outstanding fees and dues, if any, payable to SEBI,” the Sebi order stated.

A stock broker is required to showcase high degree of integrity and fairness as it acts as an interface for the retail customers.