INSUBCONTINENT EXCLUSIVE:
month asked Sebi to pass an order by January 15 in the matter.
Last month, Sebi rejected the relief sought by other lenders too, including
HDFC Bank, ICICI Bank, IndusInd Bank and Bajaj Finance saying it was not tenable and the remedy for them against Karvy Stock Broking should
be sought in civil court.
Axis Bank had moved the tribunal seeking permission to lift the freeze on shares pledged by Karvy that will allow
the lender to invoke the pledges
The move came following a Sebi directive to depositories in November that prevented the lenders from accessing the securities pledged by
Karvy Stock Broking.
Axis Bank lent Rs 80.47 crore to Karvy Stock Broking in the form of overdraft against shares.
The regulator said, data
provided by the National Stock Exchange on pledged securities indicates that securities pledged by Karvy Stock Broking in favour of Axis
the stock broker, such pledge does not pass any title to the pledgee, as the stock broker in such case himself/itself does not possess any
title/right over such securities
client and in respect of each such pledging
The representor (Axis Bank) has submitted that the PoA (power of attorney) given by the client was sufficient authorisation to create such a
authorisation that securities having value of Rs 13.69 crore belong to unpaid clients, such securities can be released to it after following
the procedure under supervision of NSE, Sebi said in its order.
