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Big blow to NSE and BSE! SEBI imposed heavy fine, accused of big scam

New Delhi: BSE and NSE have suffered a major setback. Markets regulator SEBI has fined the country’s two major stock exchanges BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). SEBI has imposed this penalty in the case of Karvy Stock Broking Ltd scam.

SEBI issued order

SEBI has issued an order for this. SEBI has written in this order, ‘BSE and NSE did not take timely steps to prevent misuse of securities of clients by Karvy Stock Broking. Also, there was slowness in the investigation of the case. That’s why SEBI has imposed this penalty.

Know how much was fined

SEBI has also told in its order that a fine of Rs 3 crore has been imposed on BSE and Rs 2 crore on NSE. It is worth noting that the brokerage company Karvy Stock Broking is accused of scam of Rs 2,000 crore. You should know that this scam has been described as the biggest equity broker scam in the country till date.

Know what is the matter?

According to the information given by SEBI, Karvy Stock Broking transferred Rs 1,096 crore to its other group company Karvy Realty by selling the shares held in the accounts of customers. The shares were sold between April 2016 and December 2019. It was after this that SEBI investigated it, then this scam came to the fore. SEBI, at the time of its initial investigation, had said that the brokerage company has misappropriated the securities of the clients. SEBI said that without informing the customers without permission, their securities were used for other purposes. After the scam came to light, SEBI had barred Karvy Stock Broking from adding new clients with immediate effect.

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