Whether or not you are investing in a Karvy investment scheme, it is important to know what they are doing. This will help you protect your money. Karvy is a financial services company that specialised in equity trading, commodities trading and depository services.
The company is registered in Hyderabad. They have branch offices in the US, Dubai and Malaysia. It has also got a fax number and an email address.
The company was reported to the Securities and Exchange Board of India (SEBI) for their shady business practices. Despite this, SEBI has not taken any action against the company or its subsidiaries.
Karvy’s activities were uncovered in a forensic audit conducted by the National Stock Exchange (NSE). During the audit, the company found that they had defaulted on over 2,300 crores of client funds.
The NSE also issued an 11-point advisory on the same. It advised investors to maintain regular checks on their demat accounts. The advisory also said that the NSE had not found any anomaly in Karvy’s Demat accounts.
The National Securities Depository Limited (NSDL) also conducted a forensic audit of the Karvy’s demat accounts. It found that the company had transferred 90% of their shares to shareholders. This is a pretty big deal.
The company also took a loan against their shares. The loan was secured by the company’s pool account. The company also siphoned off their shares to their own account. This is the biggest news.