The Securities Appellate Tribunal (SAT) has stayed the order passed by the Securities and Exchange Board of India (Sebi) prohibiting Karvy Broking Ltd?s depository participant (DP) operation from opening fresh demat accounts till December 31, 2007. Following the order, Karvy Stock Broking is now free to open fresh demat accounts with immediate effect.
Sebi, in its order released earlier in June, had also suspended certificate of registration of Karvy Stock Broking, having membership of BSE, NSE and Hyderabad Stock Exchange, with immediate effect. Karvy had challenged this part of the order in July itself and had obtained a stay oder in this matter too, sources familiar with the development, said.
The action against Karvy by the market regulator was in connection with the role played by the different entities belonging to Karvy group in matter of dealings in the initial public offerings (IPOs). Sebi had also taken action against Karvy Computershare Pvt Ltd, the Registrar to the Issue (RTI) and had it prohibited from acting as Registrar to an Issue for nine months. However, Sebi had said, as RTI had already undergone the prohibition for that period, there will be no further directions against the RTI.