NSE, BSE suspend Karvy Stock broking's trading license over non-compliance
In a major development, the National Stock Exchange of India Ltd (NSE) on Monday suspended Hyderabad-based financial services major Karvy Stock Broking Ltd’s trading licence for all segments due to non-compliance with exchange and Securities and Exchange Board of India (Sebi) norms.
"The National Stock Exchange (NSE) has suspended Karvy Stock Broking (KSBL) due to non-compliance of the regulatory provisions of the exchange with effect from December 02, 2019," the exchange said in a circular.
The suspension of the licence included its trading in the capital market, futures & options, currency derivatives, debt, MFSS and commodity derivatives segments.
Besides NSE, the BSE, Multi Commodity Exchange (MCX) and MSEI have also suspended the licence of the brokerage firm.
"Trading members of the exchange are hereby informed that pursuant to NSE Circular No.62/2019 dated December 2, 2019 informing that they have suspended Karvy Stock Broking Ltd. w.e.f. December 2, 2019 due to non-compliance of the regulatory provisions of the Exchange, BSE has deactivated trading terminals of the Trading Member, Karvy Stock Broking Ltd. (Clg. No. 917) in Equity segment & Debt segment and put them in RRM mode in Equity Derivatives, Currency Derivatives and Commodity segment w.e.f. December 2, 2019," BSE said in a circular.
Meanwhile, the suspension of KSBL could impact thousands of clients.
"Karvy has 120,000 clients, of which 300,000 are active. On average, 20,000-25,000 clients transact on a daily basis," the brokerage had told SEBI last week.
