'Karvy Broking DP in IPO irregularities'

Sebi has found that Karvy Stock Broking Depository Participant indulged in irregularities with respect to initial public offerings of certain companies way back in 2005.

Citing that the depository participant “has already undergone such prohibition for 18 months and 26 days”, Sebi has decided not to impose any further penalty.

Karvy Stock Broking, in a late evening statement, said there are no further restrictions on the Depository Participant operations of Karvy Stock Broking Ltd, as the company has already undergone the prohibition stipulated under the order.

“Hence there will be no disruption in the normal functioning of the company. Over the last few years, Karvy has beefed up its systems and processes to prevent such situations in future,” the firm said.

The Securities and Exchange Board of India (Sebi), in its order today, said the, “acts and conduct of Karvy Stock Broking DP are unfair and fraudulent” within the scope of regulations.

Sebi said that the entity is liable to be prohibited from taking up any new assignment for a period of 18 months for its involvement in IPO irregularities.

However, the market regulator said that Karvy Stock Broking DP has already undergone such prohibition for 18 months and 26 days.

“In view of the same, there need not be any further penalty,” the market regulator order said.