Company can continue normal market activities; no shifting of DP accounts

C. R. Sukumar

Hyderabad, May 2

Providing a major relief to Karvy Group on Tuesday, the Andhra Pradesh High Court passed an interim suspension order on the directives of Securities and Exchange Board of India (SEBI) that barred Karvy Group entities from carrying on certain stock market activities.

The Court has also stayed the SEBI order that asked the depository account holders of Karvy to shift to other depository participants (DPs).

Responding to a writ petition filed by Karvy challenging the SEBI directives, the High Court also permitted Karvy to continue its normal equity market activities pending final disposal of the writ petition.

Meanwhile, the Karvy Group did not succeed in obtaining an appointment from the SEBI on Tuesday for a personal hearing on the latter's interim order barring its entities from several stock market activities.

However, according to sources, Karvy has submitted a detailed memorandum to the market regulator refuting all the charges levelled against it in the interim order.

Though Karvy's request for personal hearing was not granted on Tuesday, SEBI is learnt to have expressed its willingness to consider a personal hearing at the earliest.

`No role in scam'

Our Mumbai Bureau reports :

Top officials of Karvy Group and Anagram Stock Broking, which were among the 24 entities named in the multi-crore IPO scam, met the SEBI officials on Tuesday and explained their position in the matter.

In separate meetings with SEBI, both Karvy and Anagram said they had no role whatsoever in the IPO scam, sources said.

"We made representations and submissions before SEBI. We have also asked for a personal hearing. SEBI will get back to us," said an official from Karvy.

SEBI in its interim-order had given 15 days' time to all the entities named in the scam to explain their position. Clients of Karvy were asked by SEBI to move their business to other companies within 15 days. In the case of Anagram, the SEBI ban was related to proprietary trading.

"As far as we are concerned, the SEBI order banning proprietary business will not impact us as we are into retail broking business," said an official.

Related Stories:
SEBI order harsh; we are victims of fraud: Karvy
Karvy refutes SEBI charges
SEBI bars Karvy, 23 other entities

(This article was published in the Business Line print edition dated May 3, 2006)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.