Capital markets regulator Sebi on Friday imposed a penalty totalling Rs 1.9 crore on four former officials of Karvy Group for flouting norms in the case pertaining to misappropriation of clients’ funds by Karvy Stock Broking Ltd (KSBL).
They have been directed to pay the fine within 45 days, according to the order passed by the Securities and Exchange Board of India (Sebi).
The order came after Sebi initiated adjudication proceedings against the key persons of KSBL, who allegedly contributed/colluded with the brokerage house in its wrongdoings.
Those penalised by Sebi are Krishna Hari G, who was VP (F&A) of KSBL; Srikrishna Gurazada, former compliance officer of KSBL; Srinivasa Raju, who was the General Manager- back office operations; and V Mahesh, who was the MD of Karvy Stock Broking’s subsidiary KDMSL.
The case relates to KSBL’s raising huge funds by pledging clients’ securities and by misusing the Power of Attorney (PoA) granted to it by its clients. Further, the funds by …
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