Karvy fiasco: Axis Bank moves SAT; tribunal to hear petition today

Axis Bank has become the latest lender to move the Securities Appellate Tribunal (SAT) in the Karvy Stock Broking matter. In its plea, the lender has made Central Depository Services as one of the respondents, along with National Securities Depository (NSDL) and Sebi. 

The matter will be heard by the tribunal on Thursday.

Earlier, Bajaj Finance, IndusInd Bank, HDFC Bank and ICICI Bank had also approached SAT for relief, as their collateral was wiped off after NSDL transferred the pledged securities back to clients of Karvy Stock Broking.

In earlier pleas, even though the SAT had heard arguments made by the lenders, it decided against giving immediate relief to them. 

The SAT had directed the Securities Exchange Board of India (Sebi) to give a final order in the matter.

The Bench had also rapped appellants for approaching the tribunal on December 2, when the Sebi order was passed on November 22.

It observed that “a lot of water has flowed under the bridge” during this time.

In November, Sebi had passed an interim order, directing exchanges and depositories to initiate appropriate disciplinary proceedings against Karvy according to their own bye-laws, rules and regulations.

Following this, NSDL decided to transfer 83,000 shares back to the clients of Karvy, who had cleared all outstanding dues.

 An email query sent to Axis Bank didn’t elicit any response at the time of going to press.

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