Karvy arm, its CMD get Rs 25-cr notice from Sebi

New Delhi: Markets regulator Sebi on Wednesday sent a notice to Karvy Stock Broking Ltd (KSBL) and its CMD C Parthasarathy asking them to pay around Rs25 crore within 15 days in a case pertaining to misappropriation of clients’ funds by misusing the Power of Attorney. The notice came after they failed to pay the fine imposed on them by the Securities and Exchange Board of India (Sebi).

Sebi in April 2023 barred KSBL and Parthasarathy from the securities market for seven years and also imposed a penalty of Rs21 crore on them for misappropriating clients’ funds by misusing the Power of Attorney given to the broking firm. Individually, the regulator had levied a fine of Rs13 crore on KSBL and Rs8 crore on Parthasarathy, promoter-cum-managing director. In its fresh notice, the regulator has directed KSBL and Parthasarathy to pay Rs15.21 crore and Rs9.36 crore, respectively.