32 Stock Brokers Declared Defaulters by NSE in Last Five Years: Govt
At total of 32 brokers have been declared defaulters by the National  Stock Exchange (NSE) during the past five years, the Parliament was told on Monday.
 
Market regulator the Securities and Exchange Board of India (SEBI), along with the exchanges, conducts regular inspection of brokers based on certain criteria and takes action as per its regulations and bye-laws of the exchanges, minister of state for finance, Pankaj Chaudhary told the Lok Sabha in a written reply.
 
As per the SEBI's orders dated 22 November 2019 and 24 November 2020, securities worth around Rs2,000 crore and belonging to 82,559 clients were transferred to fully paid-up clients of Karvy Stock Broking Ltd (KSBL).
 
NSE and BSE have suspended trading terminals of KSBL with effect from 2 December 2019 and declared it as a defaulter on 23 November 2020. Further, based on the findings of forensic audit report and observations of the NSE, SEBI has initiated enforcement action against KSBL, its directors, its CEO and against two group companies of KSBL under its relevant regulations, said the reply.
 
The claims of investors in the matter are being dealt with and settled by NSE as per its bye-laws. As on 20 March 2023, an amount of Rs414.24 crore has been paid to 34,497 clients from investor protection fund (IPF) of the NSE. The NSE, along with other MIIs (market intermediary institutions ) has also monetised the mutual fund distribution business of KSBL and funds amounting to around Rs150 crore have been realised and these are being utilised for distribution to the clients of the KSBL, added the reply.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
joshifarms
5 months ago
This translates to deficit of 1,435.76 Cr. (2000 minus 414.24+ 150 ) so finally who will bear this loss ???
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