SEBI Fined BSE And NSE Five Crores In The Karvy Case

SEBI fined BSE and NSE five crores, alleging negligence in the Karvy case.

Capital markets regulator SEBI has imposed penalties on BSE and NSE. This fine on both is related to the scam of brokerage firm Karvy Stock Broking Ltd.

Both the stock exchanges are alleged to have not taken any steps to prevent the wrongful use of securities worth Rs 2,300 crore by Karvy to clients.

SEBI fined BSE and NSE: SEBI has imposed a fine of Rs 3 crore on BSE and Rs 2 crore on NSE.

The entire case pertains to the misappropriation of securities of its clients by Karvy Stock Broking.

Karvy pledged securities worth Rs 2,300 crore to more than 95 thousand customers through just one Demat account.

The brokerage firm raised funds of Rs 851.43 crore from eight banks/NBFCs by pledging it for itself and its group companies.

In this matter, SEBI along with NSE and BSE started an investigation in June 2019.

NSE appointed a forensic auditor and filed a preliminary report with SEBI in November 2019. Based on this report, SEBI issued an interim order and then issued another order.

In its 2019 order, SEBI ordered depositories to transfer security from a Demat account under the supervision of NSE to the account of all customers who had paid in full.

The securities were then returned to the customers.

In December 2019, National Securities Depository Limited (NSDL) announced that securities have been returned to 82559 customers from Karvy Stock Broking Demat Account.

After this, NSE said in November 2020 that the issue related to securities and funds of Karvy’s investor’s worth Rs 2,300 crore has been resolved.

Now on Tuesday, SEBI has again issued an order in this matter and imposed a penalty on NSE and BSE.

Infosys’ net profit of 12 percent in the fourth quarter, will recruit 50 thousand new engineers with an increase in salary.

The fourth-quarter results of Infosys have come out, which have been very good. The company’s net profit in Q4 grew by 12 percent to Rs 5,686 crore.

On the other hand, the company’s revenue grew by 22.7 percent to Rs 32,276 crore as against Rs 26,311 crore in the previous review period.

The company expects revenue growth of 13 to 15 percent in the financial year 2022-23.

The company will recruit 50 thousand freshers this year. Along with this, salary increments will also be given in April.