On 22nd November, SEBI issued an interim order against Karvy Stock Broking Ltd., restricting Karvy from onboarding new clients. This is an ex parte ad interim order, meaning the notice has been issued based on allegations made by the National Stock Exchange without the regulator having heard Karvy’s side of the story.
The SEBI order also makes it clear that any new instructions issued by the broker to make transactions on their clients’ behalf will no longer be honoured. According to the order, the firm transferred client securities to itself. The broker also raised money by pledging client securities and transferred this money to its own account. It is alleged that a net amount of Rs 1,096 crore was transferred by Karvy Stock Broking to its group company, Karvy Realty Private Limited between April 1, 2016, and October 19, 2019.
Should you be worried?
A resounding no! In light of these events, we would like to remind investors that the major concern is not the stocks but the trading account balance you have kept with the broker.
Your money and stocks are just that, yours. SEBI regulates the Indian Stock Broking industry. They keep a close eye on any suspicious movements and actions taken by stockbrokers. They’ve put in place, some strict regulations through its exchanges and provided a free hand to retail and institutional clients to lodge complaints. Whatever stocks you have purchased at FundsIndia are actually stored in the depository and not with the broker (CDSL or NSDL).
Migrate to the top digital stockbroker with ease
FundsIndia offers an equity investment platform through which you can easily invest in the share market online. You can easily open a free online trading account with your digital signature and get recommendations on which shares to buy/sell, all at your fingertips.
With FundsIndia you can:
- Start investing in equities for free
- Open an account without margin money
- Get access to innovative tools like Buy Today Sell Tomorrow (BTST) and 5-Day margins
- Benefit from active monitoring of your portfolio, trigger-based investing, and more such features
On our robust portal, you can invest in Equity Baskets from various sectors created and recommended by our research team, or create your own stock baskets. An Equity Basket is a portfolio of stocks that you can invest in using a single transaction. We have introduced diversified large-cap baskets along with our sector baskets. All stock selection decisions are based on rankings generated by FundsIndia’s proprietary rule-based stock selection model and portfolio construction process.
Advantages of Investing in an Equity Basket:
- A diversified portfolio helps reduce downside risk
- Zero Management fees
- Benchmarked to an index
- Actively monitored by our research team
Our team of dedicated financial advisors will give you goal-driven advice and stock recommendations, help you create portfolios on demand, review and manage your investments for you. You don’t have to be worried again, on how to purchase shares online, or how to invest in equity funds. With FundsIndia’s free online trading account, you have access to the best place to buy stocks online.
Register now and benefit from our award-winning advisory services.