Market regulator SEBI on Wednesday suspended the registration certificate of Karvy Stock Broking Ltd (PMS Karvy) as a portfolio manager for one month for flouting regulatory norms.

In its order, the markets regulator said Karvy Stock Broking Ltd or PMS Karvy failed to provide certain details in its disclosure document, including details of penalties, pending litigation or proceedings and funding of investigation.

In addition, the company mentioned a contrary provision in its disclosure document and did not maintain uniformity in the condition of notice period mentioned in the model portfolio agreement regarding termination of agreement with clients.

Also, it failed to appoint a qualified or experienced principal officer as well as a compliance officer, and failed to rectify discrepancies in the auditor's report.

Accordingly, SEBI has directed "the suspension of certificate of registration of the noticee, i.e., Karvy Stock Broking Ltd  for a period of one month". The order comes into force with immediate effect, the Securities and Exchange Board of India said in its order.    

The order came after the regulator conducted an inspection of the company’s portfolio management activities in December 2019. The period covered in the inspection was from April 2018 to March 2019.