MUMBAI: Returning investors’ dues in the Karvy case in a timely manner is the top priority of the Securities and Exchange Board of India (Sebi), its chairman Ajay Tyagi said on Monday. He added that Sebi will soon come out with a circular to prevent incidents such as Karvy Broking Services, which had allegedly misused clients' securities. Tyagi said the regulator does not want to disrupt the disbursement of the funds and was keeping an eye on the issue.
Karvy Stock Broking has told NSE that it will pay fund shortfall of Rs 678 crore by March by selling stake in a company. A total of Rs 1,189 crore is payable by Karvy Stock Broking.
Of these Rs 511 crore is available and Rs 678 crore is the shortfall. “Whatever action is required, it will be taken,” Tyagi said in a media conference, adding that for resolution of any dispute, lenders of Karvy have recourse to proceed in the court of law. In November, the watchdog barred KSBL from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients' securities to the tune of more than Rs 2,000 crore. Commenting on the Sahara issue, Tyagi said that the court has said they will hear once the money is deposited. Meanwhile, there was not much material announcement on recategorisation of midcap and smallcap.
Sebi is still examining the recategorisation of norms for largecaps and micaps, Tyagi said. “We are actively looking at recategorisation of mutual funds and will come out with guidelines,” Tyagi said.