Karvy case: Bajaj Finance moves SAT against Sebi order

Mumbai: Bajaj Finance moved the Securities Appellate Tribunal (SAT) against the Securities and Exchange Board of India’s order barring Karvy Stock Broking from taking new clients in respect of its stock broking activities and also prevented it from using the PoA (power of attorney) given by clients after the broker was found to have allegedly misused clients' securities, ET Now reported late on Monday.

The lender is aggrieved by the Sebi order, which prevents it from accessing the pledges shares, and the company argued that these are bonafide pledges that it cannot access any more in light of Sebi order.

SAT reserved the matter for orders on Tuesday.

Also, earlier on Monday, NSE suspended Karvy Stock Broking’s licence due to non-compliance of regulatory provisions of the exchange. This included its trading in capital markets, futures & options, currency derivatives, debt, MFSS and commodity derivatives segments.

An investigation by NSE had allegedly found that Karvy had sold client stocks pledged with it through associated entities and diverted the funds.

After NSE, BSE also suspended Karvy Stock Broking due to non-compliance of the regulatory provisions of the exchange.