IIFL Securities bags Karvy's demat accounts, Axis Securities gets trading accounts

IIFL Securities and Axis Securities have won the bids to acquire demat and trading accounts of Karvy Stock Broking Limited, respectively.

On February 6, depositories NSDL and CDSL had said that trading as well as demat accounts held by Karvy will be transferred to another member or participant through a formal bidding process on the basis of laid down eligibility criteria.  

"This is to inform you that IIFL Securities Ltd. has emerged as the successful bidder for demat accounts held by Karvy with NSDL and CDSL. The said transfer of demat accounts is subject to remittance of the bid amount and submission of the necessary documents in relation thereto," IIFL Securities said in a stock filing.

Karvy had over 11 lakh demat accounts with custody value of Rs 3.01 lakh crore as on January 31, 2021.

In a separate statement, Axis Securities said it has won the bid for Karvy's trading accounts. "Once the process is complete, the customer base of Axis Securities will surge from 2.5 million to over 3.6 million," it said.

In November 2019, the Securities and Exchange Board of India had barred Karvy from taking new clients with respect to stock broking activities for alleged misuse of clients' securities. In November 2020, NSE and BSE had declared Karvy as a defaulter and expelled the brokerage house from their membership.

Also read: NSE cancels Karvy's brokerage licence, declares it as defaulter