Sebi cancels registration of Karvy Stock Broking for misappropriation

Capital markets regulator Sebi on Wednesday cancelled the registration of brokerage firm Karvy Stock Broking Ltd (KSBL) for mis-utilising clients' funds and securities.

Cancelling the registration, Sebi said that Karvy was involved in transferring of funds from clients' accounts to own accounts. Such funds were, in turn transferred to the group companies of the brokerage house. Further, it raised funds by pledging clients' securities.