SEBI imposed fine on Karvy Group
SEBI imposed fine: The Securities and Exchange Board of India (SEBI) has recently levied a penalty of Rs 1.9 crore on four ex-officials of Karvy group. These individuals were found guilty of multiple violations, which included misappropriation of clients’ securities, as well as non-segregation of clients’ funds and securities. The four former officials who have been penalized are Krishna Hari G, who was the Chief Financial Officer (CFO) of Karvy group, Srikrishna Gurazada, who served as the Compliance Officer, P Srinivasa Raju, who was the Head of Back Office Operations, and V Mahesh, who was the CEO of Karvy Data Management Services.
As per the findings of SEBI, these individuals were responsible for misappropriating the securities of clients, which were kept in custody with Karvy group. Additionally, they also failed to segregate clients’ funds and securities from the company’s own assets. These actions were in contravention of SEBI’s regulations and guidelines, which mandate the safeguarding of clients’ assets by brokers and other intermediaries. This penalty has been levied to deter other market intermediaries from engaging in similar malpractices and to protect the interests of clients in the securities market.
SEBI’s investigation has revealed that the four individuals who were fined played a crucial role in supporting and encouraging KSBL in committing the violations. The 80-page order states that these individuals were key employees of KSBL during the time of the violations and actively aided the company’s actions, leading to financial losses for many investors. The order further emphasizes the importance of following SEBI’s guidelines and regulations and highlights the serious consequences for those who fail to do so. The order highlights that these four individuals were key employees of KSBL at the time of the violations, and their actions have resulted in numerous investors suffering losses.
The order also notes that despite more than three years passing since the interim order, the funds and securities belonging to KSBL’s clients have still not been settled. This failure to resolve the issue only adds to the severity of the situation and highlights the need for prompt and effective action in protecting investors and their assets. SEBI’s Adjudicating Officer, Prasanta Mahapatra, has noted that the actions of these four individuals have had a significant impact on the investors, and the lack of settlement for KSBL’s clients further emphasizes the gravity of the situation. The order serves as a warning to other market intermediaries to adhere to SEBI’s regulations and guidelines, and ensure the safeguarding of clients’ assets.
About Karvy Group
Karvy Corporate.
| Type | Private |
|---|---|
| Industry | Finance |
| Founded | 1983 |
| Headquarters | Hyderabad, Telangana, India |
| Area served | Worldwide |
The Karvy Group is a notable Indian conglomerate that provides a diverse range of financial services. Established in 1981, the company has grown significantly and is now one of the largest integrated financial services groups in India. Karvy Group’s various businesses comprise data processing, stock broking, wealth management, and financial advisory services. The company offers a wide array of services, including trading and depository services, debt market operations, investment banking, and commodity trading, among others. Karvy Group is known for its customer-centric approach, efficient services, and reputation for professionalism. Recently, it is getting recognized due to SEBI imposition of fine on high level management.
