Karvy scam: SAT reserves order on Axis Bank's plea

Karvy scam: SAT reserves order on Axis Bank's plea

Axis Bank has moved the Securities Appellate Tribunal against the decision of NSDL and the SEBI to transfer pledged shares to beneficiaries in Karvy Stock Broking case

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AXIS Bank claimed that it had extended an overdraft facility of Rs 100 crore to KarvyAXIS Bank claimed that it had extended an overdraft facility of Rs 100 crore to Karvy
BusinessToday.In
  • Dec 12, 2019,
  • Updated Dec 12, 2019 9:48 PM IST

The Securities and Appellate Tribunal (SAT) has reserved its order on the plea filed by Axis Bank in the Karvy Stock Broking case. The private sector lender had approached the appellate tribunal against the decision of National Securities Depository Ltd (NSDL) and the Securities and Exchange Board of India (SEBI) to transfer pledged shares to beneficiaries in the matter.

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NSDL, in its order, stated that shares pledged with Axis Bank that were held in Karvy Stock Broking's demat account will be kept in abeyance. The bank has challenged this order, stating that it was illegal and without jurisdiction. It had also contended a November 22 order by SEBI related to Karvy's other demat account.

The private lender claimed that it had extended an overdraft facility of Rs 100 crore to Karvy Stock Broking Limited (KSBL), a subsidiary of Hyderabad-based firm Karvy Corporate. Out of this, Rs 80 crore, which includes interest, is due to the bank. Axis Bank has sought the SAT's direction against the depository to allow it to take action in connection with the pledged shares.

The Securities and Appellate Tribunal (SAT) has reserved its order on the plea filed by Axis Bank in the Karvy Stock Broking case. The private sector lender had approached the appellate tribunal against the decision of National Securities Depository Ltd (NSDL) and the Securities and Exchange Board of India (SEBI) to transfer pledged shares to beneficiaries in the matter.

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NSDL, in its order, stated that shares pledged with Axis Bank that were held in Karvy Stock Broking's demat account will be kept in abeyance. The bank has challenged this order, stating that it was illegal and without jurisdiction. It had also contended a November 22 order by SEBI related to Karvy's other demat account.

The private lender claimed that it had extended an overdraft facility of Rs 100 crore to Karvy Stock Broking Limited (KSBL), a subsidiary of Hyderabad-based firm Karvy Corporate. Out of this, Rs 80 crore, which includes interest, is due to the bank. Axis Bank has sought the SAT's direction against the depository to allow it to take action in connection with the pledged shares.

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