{"id":1461,"date":"2019-11-27T16:21:09","date_gmt":"2019-11-27T16:21:09","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/11\/27\/sebi-knocks-out-karvys-defence-ajay-tyagi-says-broking-firm-did-what-was-never-allowed\/"},"modified":"2019-11-27T16:21:09","modified_gmt":"2019-11-27T16:21:09","slug":"sebi-knocks-out-karvys-defence-ajay-tyagi-says-broking-firm-did-what-was-never-allowed","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/11\/27\/sebi-knocks-out-karvys-defence-ajay-tyagi-says-broking-firm-did-what-was-never-allowed\/","title":{"rendered":"SEBI knocks out Karvy&#8217;s defence: Ajay Tyagi says, broking firm did what was \u2018never allowed\u2019"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1776395\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/11\/sebi-9.jpg\" alt=\"sebi, karvy\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/sebi-9.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1776395\" src=\"https:\/\/images.financialexpress.com\/2019\/11\/sebi-9.jpg\" alt=\"sebi, karvy\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/11\/sebi-9.jpg 660w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/11\/sebi-9-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">The crackdown on Karvy Stock Broking followed after the NSE forwarded a preliminary report to SEBI on the non-compliances observed with respect to the pledging or misuse of client securities by Karvy Stock Broking (KSBL).<\/span><\/figure>\n<\/div>\n<p>Days after banning Karvy Stock Broking, SEBI Chief Ajay Tyagi on Wednesday said that the brokerage indulged in activities that were \u2018never allowed\u2019. It comes as the capital market regulator banned Karvy from selling shares of clients pledged with it through associated entities. \u201cWhat is basically never allowed was being done. It is not that this separation was asked in June,\u201d news agency PTI reported citing Ajay Tyagi on the sidelines of the Organisation for Economic Co-operation and Development (OECD)-Asian roundtable on corporate governance. On Saturday, Karvy said that there is no instance where there has been misutilisation of client securities.It also said that according to the SEBI directives, the shares were pledged from time to time in full compliance with the then directives as was the standard practice across broking houses.<\/p>\n<p>The crackdown on Karvy Stock Broking followed after the NSE forwarded a preliminary report to SEBI on the non-compliances observed with respect to the pledging or misuse of client securities by Karvy Stock Broking (KSBL). Karvy Stock Broking was found to move clients\u2019 pledged shares (against which they receive margin funding from the broker) to its own account via off-market deals and transferred a net amount of Rs 1,096 crore to its group company, Karvy Realty Private Limited between April 1, 2016, and October 19, 2019, as per SEBI\u2019s findings. In a report submitted to SEBI, the NSE said that Karvy misused the power of attorney given by its clients.<\/p>\n<p><a href=\"https:\/\/www.financialexpress.com\/industry\/lvmhs-bernard-arnault-beats-bill-gates-as-2nd-richest-person-trails-behind-jeff-bezos-by-this-much\/1776544\/\" target=\"_blank\" rel=\"noopener noreferrer\"><b>Also read: Bill Gates no longer 2nd richest person; Jeff Bezos\u2019 crown also in danger by this fashion mogul<\/b><\/a><\/p>\n<p>The NSDL and CDSL were asked not to act upon any instructions given by KSBL in pursuance of power of attorney given by its clients.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] The crackdown on Karvy Stock Broking followed after the NSE forwarded a preliminary report to SEBI on the non-compliances observed with respect to the pledging or misuse of client securities by Karvy Stock Broking (KSBL). Days after banning Karvy Stock Broking, SEBI Chief Ajay Tyagi on Wednesday said that the brokerage indulged in activities [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1462,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1461"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1462"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}