Penalty on BSE-NSE: The Securities and Exchange Board of India (SEBI) has imposed a fine of crores on Bombay Stock of Exchange and National Stock of Exchange. Let us tell you that Karvy Stock Broking Limited (KSBL) was ‘negligent’ in detecting the misuse of securities of its clients worth Rs 2,300 crore, due to which SEBI has imposed a penalty on BAC and NSE.
Know how much was fined?
Let us tell you that SEBI has issued two separate orders in this regard. A fine of Rs 3 crore has been imposed on BSE and Rs 2 crore on National Stock Exchange (NSE).
Know what is the whole matter?
The case pertains to misappropriation of securities worth Rs 2,300 crore by KSBL. These securities were associated with more than 95,000 customers. KSBL had pledged these securities through only one demat account. The money raised by pledging the securities was used by KSBL for itself and its group entities.
Rs was raised from 8 banks
KSBL had raised Rs 851.43 crore from eight banks/non-banking financial companies (NBFCs) through pledged securities.
According to the order issued by the exchanges on Tuesday, “There is no doubt that it was KSBL who pledged securities of the clients in an unauthorized manner.” In such a situation, she herself was responsible for the loss. He pledged securities which he did not own. This caused losses to the banks and NBFCs lending to KSBL along with the investors.
KSBL BSE and NSK are members
SEBI said that KSBL being a member of BSE and NSE was under the regulatory supervision of the exchanges. Both the exchanges are responsible for the ‘negligence’ in detecting the misuse of funds by KSBL.