Karvy Stock Broking case: Big action taken against company, BSE, NSE suspend trading

After being in the news for days for all the wrong reasons, Karvy Stock Broking has been slapped with a suspension of trading order. Now, investors cannot trade in shares through Karvy Stock Broking. Trading license of Karvy Stock Broking has been suspended by BSE and NSE exchanges after getting the orders from SEBI. A circular issued by the exchanges mentioned that Karvy wasn't following the rules and regulations of SEBI, hence the license got suspended.  Other exchanges might take action against Karvy Stock Broking. Here's the latest update by Zee Media Correspondent, Brijesh Kumar:

Here are the actions taken by exchanges against Karvy Stock Broking: 

Trading member license has been suspended by BSE, NSE

Action was taken after SEBI's order

Trading terminal of Karvy halted after SEBI's order

Investors can get their accounts opened through other brokers

Investigation against Karvy for not implementing SEBI's rule

Equity Cash, F&O, Currency, Debt, Commodity Trading stopped

WATCH Zee Business TV LIVE Streaming Online -

Alleged for keeping investors share in mortgage

Shares of Rs 2300 crores transferred without client's permission

There's a possibility of misusing the shares of 95,000 investors

Forensic Audit procedure against Karvy

EY and NSE is implementing a Forensic Audit procedure

Things Found during investigation:

Allegedly transferred Rs 1096 Crore to real estate business

Rs 485 Crores of shares from the shareholders have been sold to group companies

Rs 162 Crore transferred to the group related companies

Rs 116 Crore rupees took from the closed accounts of shareholders 

Importance of Karvy in Market
 
3 lakh active client out of 12 Lakh client

Trading Daily average is 20-25 thousand clients

 15000-18000 are connected with Online Trading