Sebi extends deadline till December for Karvy investors to file claims

New Delhi, Aug 21 (PTI) Markets regulator Sebi on Thursday extended the deadline till December for investors of defaulted broker Karvy Stock Broking Ltd (KSBL) to file their claims.

KSBL was declared a defaulter by the National Stock Exchange (NSE) on November 23, 2020. Following this, investors were invited to submit claims against the broker, with the final date for submission set as June 2, 2025.

Now, the regulator has "decided to extend the deadline till December 31, 2025".

Investors have been suggested to take note of the deadline and are urged to file their claims before the deadline, if not lodged already, Sebi said in its statement.

For assistance, investors can reach out to NSE by calling its toll-free number 1800 266 0050 or by e-mailing at defaultisc@nse.co.in, it added.

In April 2023, Sebi barred KSBL and its CMD C Parthasarathy from the securities market for seven years and also imposed a penalty of Rs 21 crore on them for misappropriating clients' funds by misusing the Power of Attorney given to the broker.

This action emanated from a massive asset mobilisation drive by KSBL, in which it raised huge funds from financial institutions. The broker did so by pledging clients' securities -- secured through the Power of Attorney granted to KSBL -- with promises of paying interest.

However, instead of fulfilling these commitments, the funds were misappropriated and diverted to entities connected with KSBL, ultimately leading to defaults in settling client securities and funds, in violation of regulatory norms. PTI SP ANU ANU