The National Stock Exchange (NSE) has declared Karvy Stock Broking as a defaulter for non-compliance with the regulatory provisions of the bourse.
In addition, Karvy Stock Broking has been expelled from the membership of the exchange, the NSE said in a circular.
The move, effective from November 23, was taken as the broker failed to comply with NSE’s guidelines, it added.
Under the guidelines, stock brokers are required to fulfil their obligations and should not involve in any misconduct, or unprofessional conduct, among others.
Earlier, Karvy had unauthorisedly transferred securities of clients into its demat accounts by misusing the Power of Attorney (PoA) given by its clients.
In November 2019, the market regulator Securities and Exchange Board of India (SEBI) had barred Karvy from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients’ securities to the tune of more than ₹2,000 crore. The firm misused client collateral for its own trades.
Besides, Karvy was disabled (trading rights withdrawn) by the NSE in December 2019.