Karvy Case: SAT Refuses Relief To HDFC Bank, ICICI Bank, IndusInd Bank
The Securities Appellate Tribunal on Wednesday refused any immediate relief to top lenders who had petitioned against the transfer of securities held with Karvy Stock Broking Ltd. back to the clients.
Karvy Stock Broking allegedly used its demat account to transfer securities worth Rs 2,300 crore of more than 95,000 clients by misusing the power of attorney provided them. About 83,000 clients got back their securities on Monday, following which Bajaj Finance Ltd. moved SAT and secured interim relief on further transfers.
The private banks joined the petition on Tuesday and there was a lengthy hearing.
On Wednesday, SAT said no further relief can be granted to the lenders beyond the order in the Bajaj Finance plea. They can now approach Securities and Exchange Board of India by Dec. 6 with a fresh plea. A whole-time member of the regulator would give a personal hearing to the aggrieved parties and pass an order by Dec. 12.