The Securities Appellate Tribunal (SAT) on Tuesday ordered suspension
of any further transfer of securities that Karvy Stock Broking had
pledged with the lenders.
Bajaj Finance had challenged the SEBI
order to return to Karvy's clients the securities that the broking firm
had illegally pledged to raise money for itself.
"In the interim
further transfer of securities shall remain suspended from DP account
no. 11458979, named KARVY STOCK BROKING LTD. (BSE) in terms of direction
no. (iv) of the impugned order (supra)," the SAT order said.
The tribunal also direct the SEBI to hear the lender's concerns by December 4 and pass an order by December 10.
worth worth Rs 2,013.77 crore were transferred to over 83,000 investors
of Karvy, following which Bajaj Finance moved the SAT.
pledged securities worth Rs 2,300 crore of over 95,000 clients with
HDFC Bank, ICICI Bank, Bahah Finance and Indusind Bank as collateral to
raise money for itself, as per a SEBI investigation.
Following the revelation, SEBI barred the firm from taking new clients on board.
Monday, the National Stock Exchange (NSE) and the BSE announced the ban
on the broking firm on account of non-compliance of regulations.
banned Karvy from capital market, futures and options (F&O),
currency derivatives, debt, Mutual Fund Service System (MFSS) and
commodity derivatives, while BSE deactivated its trading terminals on
equity and debt segments and put them in "RRM" (risk reduction mode)
mode in equity derivatives, currency derivatives and commodity segment.