కార్వీలో గోల్ మాల్, కస్టమర్లు ఎలా మునిగారు? || Why The Crisis In Karvy Stock Broking ||
It isn’t that they cannot find the solution. It is that they cannot see the problem," said the English writer G.K. Chesterton. It seems fair to use this description for the Securities and Exchange Board of India (Sebi), which for years, has been trying to protect clients’ funds and securities from unscrupulous brokers. Nearly five years ago, after a number of cases of siphoning by brokers surfaced, this column had said that some rules drafted by Sebi looked good only on paper. The need of the hour was exemplary justice, accompanied with better inspection and surveillance capabilities and, perhaps, even shifting the role of regulating brokers out of stock exchanges.
Nearly five years hence, we have more rules to protect client funds and securities, but we also have a bigger scam. Karvy Stock Broking Ltd coolly pledged clients’ securities and raised funds of about ₹2,800 crore, and reports suggest it even sold some client securities. After a diktat by Sebi to the depositories, most of the securities have been returned to the clients. But the lenders to Karvy are now crying foul and have approached the Securities Appellate Tribunal for relief. The silver lining in all of this mess is that the legal squabble may throw some light on where current regulations and processes fall short.
https://www.livemint.com/opinion/columns/karvy-crisis-is-just-what-the-doctor-ordered-for-sebi-11575565047113.html
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
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కార్వీలో గోల్ మాల్, కస్టమర్లు ఎలా మునిగారు? || Why The Crisis In Karvy Stock Broking || It isn’t that they cannot find the solution. It is that they cannot see the problem," said the English writer G.K. Chesterton. It seems fair to use this description for the Securities and Exchange Board of India (Sebi), which for years, has been trying to protect clients’ funds and securities from unscrupulous brokers. Nearly five years ago, after a number of cases of siphoning by brokers surfaced, this column had said that some rules drafted by Sebi looked good only on paper. The need of the hour was exemplary justice, accompanied with better inspection and surveillance capabilities and, perhaps, even shifting the role of regulating brokers out of stock exchanges. Nearly five years hence, we have more rules to protect client funds and securities, but we also have a bigger scam. Karvy Stock Broking Ltd coolly pledged clients’ securities and raised funds of about ₹2,800 crore, and reports suggest it even sold some client securities. After a diktat by Sebi to the depositories, most of the securities have been returned to the clients. But the lenders to Karvy are now crying foul and have approached the Securities Appellate Tribunal for relief. The silver lining in all of this mess is that the legal squabble may throw some light on where current regulations and processes fall short. https://www.livemint.com/opinion/columns/karvy-crisis-is-just-what-the-doctor-ordered-for-sebi-11575565047113.html
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