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Bajaj Finance invokes pledged shares of Karvy subsidiary

Our Bureau Hyderabad | Updated on December 19, 2019 Published on December 19, 2019

To recover dues from Karvy Stock Broking

Bajaj Finance has acquired 10 per cent equity in Karvy Data Management Services by invoking the pledged shares.

According to a regulatory filing made with the BSE, Bajaj Finance has informed that the shares of the company Karvy Data Management Services were pledged with it towards securing outstanding dues of Karvy Stock Broking Limited, which is news for payment delays.

The shares of KDMSL were pledged with the company for securing the outstanding dues of Karvy Stock Broking Limited (KSBL), the borrower company. Bajaj Finance informed that it has invoked the pledged shares of KDMSL for recovery of its dues.

The acquisition of 24,00,000 shares having face value of ₹10 a share was made by Bajaj Finance as the payments were due and there was default in honouring payments.

The unlisted public company Karvy Data Management Services was founded in the year 2008 and closed the financial year 2018-19 with a turnover of ₹1,274.39 crore and profit of ₹75.20 crore. It has been providing IT and data management solutions for the parent Karvy Group and other companies.

Bajaj Finance had earlier this month moved the Securities Appellate Tribunal against the Securities and Exchange Board of India order barring Karvy Stock Broking from taking new clients and stock broking activities in a related case where payments were defaulted.

Published on December 19, 2019
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