Bajaj Finance Shares Surge On Invoking Pledged Shares Of Karvy Data Management Services

On Thursday, Bajaj Finance said that it has invoked 24 lakh pledged shares of Karvy Data Management Services (KDMSL) to recover outstanding dues from its group firm- Karvy Stock Broking (KSBL).

"The shares of KDMSL were pledged with the company (Bajaj Finance) for securing the outstanding dues of Karvy Stock Broking (KSBL), the borrower company. The company has invoked the pledged shares of KDMSL for recovery of its dues," the company said in its stock exchange filing.

Bajaj Finance said that it has acquired 24 lakh equity shares of the face value of Rs 10 each representing 10 percent of the paid-up capital of KDMSL.

Shares of Bajaj Finance rose as much as 0.5 percent to Rs 4,120 apiece.

KDMSL is a Hyderabad-based step-down subsidiary of Karvy Stock Broking that provides business and knowledge process services. It was incorporated in 2008.

Bajaj Finance is among the group of lenders with the largest exposure to Karvy Stock Broking, which is accused of borrowing from lenders by pledging shares belonging to its clients, without authorization.

On 22 November, SEBI barred Karvy from acquiring new clients and from using power of attorney, thereby barring it from trading on behalf of clients.