IPO scam: Respite for Karvy
KARVY STOCK Broking Limited got a sigh of relief against the arbitrary orders of the Security Exchange Board of India (SEBI).Updated: May 07, 2006 00:03 IST
KARVY STOCK Broking Limited got a sigh of relief against the arbitrary orders of the Security Exchange Board of India (SEBI).
The High Court of Andhra Pradesh has passed interim orders staying the SEBI orders, which asked the clients of Karvy, one of the 24 intermediaries named in the multi-croreIPO scam, to transfer their accounts to other depository participants.
The vacation judge Justice Raghuram also allowed Karvy to open fresh demat accounts. The court said subject to SEBI filing its counter, Karvy can go ahead with its business.
The fresh date in the case has been fixed for June 5. The court order has enabled Karvy to go ahead with their business activities at the UP Stock Exchange (UPSE).
According to senior executive of the company Deepak Srivastava, the company had asked an appointment from the SEBI authorities but to no avail.
Consequently in order to protect the interests of their clients they had to challenge the arbitrary orders of the SEBI at the Andhra Pradesh High Court.