NSE, BSE suspend Karvy Stock Broking with immediate effect

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Mumbai, Dec 2 (IANS) In a major blow to Karvy Stock Broking Ltd, the National Stock Exchange (NSE) and the BSE on Monday announced the ban on the broking firm on account of non-compliance of regulations.

NSE banned Karvy from capital market, futures and options (F&O), currency derivatives, debt, Mutual Fund Service System (MFSS) and commodity derivatives.

BSE has deactivated Karvy’s trading terminals on equity and debt segments and put them in “RRM” (risk reduction mode) mode in equity derivatives, currency derivatives and commodity segment.

Referring to Karvy, an NSE circular said: “The National Stock Exchange of India Limited has suspended the following member due to non-compliance of the regulatory provisions of the Exchange with effect from December 02, 2019.”

The development comes on the backdrop of the SEBI order last month which had found that the brokerage firm had misused client securities and routed it for other purposes.

The market regulator had barred the broking firm from taking new clients on board and also directed the exchanges to initiate disciplinary proceedings against the firm.

–IANS

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