New Delhi: SEBI has issued a post hearing order on the Karvy Group.
SEBI has not altered its two-fold prima facie findings on the group, relating to Karvy's involvement in the modus operandi and the need for immediate action, but has offered some relief to Karvy, reports CNBC-TV18.
Karvy says it can now service mutual fund NFOs, though it is still disallowed from taking on any new IPOs until the enquiry is complete.
Also, Karvy DP can continue to serve existing clients. But there's an embargo on new depository participant accounts pending the enquiry.
The Chairman of the Karvy Group, C Parthasarathy clarified saying that embargo on new accounts continues.
As far as IPOs are concerned, those cannot be serviced until the enquiry is over. The High Court order stated very clearly that we could continue our DP operations. It did not say that it can open new accounts. We didn't even pray for that.
The SEBI order now says that existing depository participant customers can continue to be serviced. There is still an embargo on new accounts and this probably will be decided after the enquiry is completed.
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