NSE, BSE, MCX Suspend Karvy Stock Broking's License For Non-Compliance Of Regulations

On Monday, NSE suspended Karvy Stock Broking's license due to non-compliance of regulatory provisions of the exchange.

According to NSE's circular, with effect from 2 December 2019, Karvy Stock Broking will no longer be able to operate in segments such as the capital market, futures and options, currency derivatives, debt, mutual fund service system and commodity derivatives.

BSE and MCX (Multi Commodity Exchange) have also have suspended license of the brokerage firm.

On 22 November, SEBI in an order had banned Karvy Stock Broking for client defaults worth Rs 2,000 crore. It had also been banned from taking on new clients and executing trades for existing customers.

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

According to an Economic Times report, investors with accounts with the brokerage will be able to migrate to other brokers.