Stock exchanges and depositories of Karvy Stock Broking have decided to sell their assets in order to repay the dues of their client, a first in India, a report by Economic Times said,
National Securities Depository Ltd (NSDL) summoned bids to sell trading and demat accounts of the stockbroking company after seeking advice from Central Depository Services and stock exchanges. Karvy had 7.23 lakh demat accounts worth Rs.2.84 lakh crore as of 31st January 2021. An exchange official quoted by the Economic Times that this move will set a precedent for India and will help decide the real value of a demat account.
The trading terminals of Karvy Stock Broking has been closed since December 2019 on orders by Security and Exchange Board of India (SEBI) on both NSE and BSE. Their clients couldn’t have access to their funds or securities because of this.