Axis Bank has become the latest lender to move the Securities Appellate Tribunal (SAT) in the Karvy Stock Broking matter.
Earlier, Bajaj Finance, IndusInd Bank, HDFC Bank and ICICI Bank, had approached the SAT for relief after their collateral was wiped off with the National Securities Depository (NSDL) transferring pledged securities back to clients of Karvy Stock Broking.
In earlier pleas, while the SAT heard arguments put forward by the lenders, it decided against giving immediate relief to them. The SAT had directed Sebi to give final order in the matter.
The bench had also rapped appellants for approaching the tribunal on December 2 when the Securities and Exchange Board of India (Sebi) order was passed on November 22. It observed that "a lot of water has flowed under the bridge" during this time.
ALSO READ: Karvy scandal fallout: Brokers fear escalation of compliance costs
In November, Sebi passed an interim order, which also directed exchanges and depositories to initiate appropriate disciplinary proceedings against Karvy Stock Broking in line with their own bye-laws, rules and regulations.
Following this, NSDL decided to transfer 83,000 shares back to Karvy Stock Broking's clients, who had cleared all outstanding dues.
In its plea, Axis Bank has also made Central Depository Services as one of the respondents, along with NSDL and Sebi. The matter will be heard by SAT on Thursday. An e-mail query sent to Axis Bank did not elicit any response at the time of going to press.
Earlier, Bajaj Finance, IndusInd Bank, HDFC Bank and ICICI Bank, had approached the SAT for relief after their collateral was wiped off with the National Securities Depository (NSDL) transferring pledged securities back to clients of Karvy Stock Broking.
In earlier pleas, while the SAT heard arguments put forward by the lenders, it decided against giving immediate relief to them. The SAT had directed Sebi to give final order in the matter.
The bench had also rapped appellants for approaching the tribunal on December 2 when the Securities and Exchange Board of India (Sebi) order was passed on November 22. It observed that "a lot of water has flowed under the bridge" during this time.
ALSO READ: Karvy scandal fallout: Brokers fear escalation of compliance costs
In November, Sebi passed an interim order, which also directed exchanges and depositories to initiate appropriate disciplinary proceedings against Karvy Stock Broking in line with their own bye-laws, rules and regulations.
Following this, NSDL decided to transfer 83,000 shares back to Karvy Stock Broking's clients, who had cleared all outstanding dues.
In its plea, Axis Bank has also made Central Depository Services as one of the respondents, along with NSDL and Sebi. The matter will be heard by SAT on Thursday. An e-mail query sent to Axis Bank did not elicit any response at the time of going to press.
No comments:
Post a Comment