SAT refuses relief to lenders in Karvy case.
No More Relief: Securities Appellate Tribunal (SAT) has refused to give any further relief to HDFC Bank, ICICI Bank, Bajaj Finance and Indusind Bank in Karvy Broking share pledge case.
Previously, Bajaj Finance and other banks had moved SAT seeking directions against Securities & Exchange Board of India (SEBI) and National Securities Depository Ltd (NSDL) for securing shares pledged by Karvy to them. On December 3, in an interim relief, SAT had ordered NSDL to not transfer any more shares to Karvy clients. ET Markets
In Other News: In the wake of the Karvy crisis, SEBI has given time to at least six brokers to wind up their client securities accounts and submit the progress reports on pledged securities used to raise money from banks and finance firms.
As per sources, SEBI had identified some brokers, mostly mid-sized ones, who had not just failed to separate client shares but raised loans and utilised them in their other ventures. The regulator wants these brokers to remove the pledges and return the shares to the clients (those who paid the dues). BS
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