Investors complain to govt as Karvy delays broking payouts
Concerns are being raised about the financial problems at Karvy after several investors have complained that payouts by the broking firm are being delayed. Investors across the country have complained on social media to the Prime Minister's Office, (PMO), Finance Ministry and markets regulator, and SEBI, seeking their payouts.
Reports suggest that Karvy is facing a liquidity crunch due to a number of bad client trades on castor seeds. The Hyderabad based-financial services group is facing liquidity problems as some clients have defaulted on payments after incurring huge losses on trades in castor seed contracts. The payments contagion now seems to have spread to other investors who are complaining that Karvy is not making the payments.
Dipak Mundra said in a tweet on Karvy Stock and karvyFintech handle, "Despite requesting transfer of existing funds from my trading account (payout), why it is not being done on the pretext that there are server issues."
"@KarvyStock Even after placing request for payout of funds why it is not being transferred to my bank a/c. Every time I have placed request, it is being stated that there is a server problem. How can the same excuse be cited everytime? Is there something seriously wrong with Karvy," he said.
Another investor too has complained about Karvy not giving the payments. Bindiya Shah from Pune said in a tweet "@SEBI_India @KarvyStock this is really disheartening for every customer for karvy as they hv broken our trust my id is 681093 n im from pune hv made several payout request bt none hv been successful is karvy facing sum serious issues pls help."
Another complaint from the twitter handle MKR said, "@FinMinIndia M/s Karvy stock broking is not paying my payout request. I am trying last 20 days. Now neither they are responding nor they are paying. This is my money. Thanks."
Gitesh Yeole has also complained to PMO and Finance Ministry on Karvy. "@KarvyStock @FinMinIndia @PMOIndia on 8th Nov and 12th Nov I have put payout request for my trading code 435702. Till today I have not received it. I have called customer care and RM 100 times but no action..What's going on India after BMA now it is Karvy on the same way."
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