Home   »   SEBI Crackdown: Karvy Investor Services Loses...

SEBI Crackdown: Karvy Investor Services Loses Merchant Banker Registration

In a significant move, the Securities and Exchange Board of India (SEBI) has cancelled the registration of Karvy Investor Services Ltd (KISL) as a merchant banker due to a breach of eligibility criteria.

The Inspection

  • SEBI conducted an inspection of Karvy Investor Services during March 15-17, 2023.
  • During the on-site inspection, SEBI found that KISL was not functioning or operational at both its registered and correspondence addresses.
  • Further inspection revealed that the merchant banker lacked the required infrastructure.

Cancellation of Registration

  • Citing the findings, SEBI has cancelled the certificate of registration of Karvy Investor Services Ltd as a merchant banker.
  • The order comes into immediate effect.

Previous Action

  • In April 2023, SEBI had barred KISL from taking new clients for allegedly violating regulatory norms.
  • At that time, SEBI found that KISL neither had any physical infrastructure nor any employees working for it.

Background

  • Karvy Investor Services was registered as a merchant banker with SEBI in December 2013.
  • Merchant bankers play a crucial role in the capital market, assisting companies with various services like initial public offerings (IPOs), mergers and acquisitions, and other corporate advisory services.

SEBI’s decision to cancel KISL’s registration as a merchant banker highlights the regulator’s commitment to maintaining high standards and ensuring strict compliance with eligibility criteria within the capital markets. This action is aimed at safeguarding the interests of investors and upholding the integrity of the financial system.

PolicyBazaar Establishes Wholly Owned Subsidiary 'PB Pay Private Limited': Expansion into Payment Aggregation Services_80.1

SEBI Crackdown: Karvy Investor Services Loses Merchant Banker Registration_5.1
About the Author

As a team lead and current affairs writer at Adda247, my role involves researching and creating informative and engaging content aimed at helping candidates prepare for national and state-level competitive government exams. I specialize in delivering insightful articles that keep aspirants updated on the latest current affairs trends and developments. My primary focus is on educational excellence, ensuring that our readers are well-prepared and informed to face their exams with confidence. Through meticulously crafted content, I aim to guide and support candidates in their journey toward success.

TOPICS: