The Securities Appellate Tribunal (SAT) on Tuesday asked Sebi to pass an order within 15 days in Karvy Broking matter on Axis Bank’s plea, which said the regulator’s ruling is preventing the lender from accessing securities pledged by the broking firm through another account.
The order comes following a Sebi directive to the National Securities Depository Ltd (NSDL) in November that prevented Axis Bank from accessing the securities pledged with the lender by Karvy Stock Broking Limited (KSBL). The case pertains to the securities held by KSBL, which were used by the brokerage for borrowing, courtesy the power of attorneys (PoA) that they held.
The securities held by over 83,000 clients were given back to them after Sebi asked NSDL to do so, forcing lenders — Bajaj Finance, ICICI Bank, HDFC Bank and IndusInd Bank — to move SAT and secure an interim relief on further transfers.
However, SAT refused any immediate relief to top lenders. NSDL’s move helped 90 per cent of KSBL’s demat account holders get back their securities.