Karvy and Indiabulls challenge sebi in SAT

Mumbai, Apr 28: In a latest development, both Karvy Stock Broking, a major depository participant and Indiabulls, a stock broking firm have decided to challenge the Securities and Exchange Board of India (SEBI) order in the Securities Appelleate Tribunal (SAT) after studying the original document today.

Company sources have informed that officials will study the original orders before taking up the issue with the higher authorities.

Meanwhile, lakhs of retail investors who were in tight spot since both the demat and the trading accounts were held up, would be relieved by the Sebi order that the client should switch over from Karvy and Pratik as Depository Participants(DP) within 15 days, according to the latest circular issued by Securities and Exchange Board of India(SEBI).

Meanwhile, the Bombay Stock Exchange(BSE) dipped sharply by 491 points to 11,344 points just after opening at 11,698 as compared to the last close of 11,835 points.

It should be noted that yesterday SEBI banned 24 operators including Karvy Stock Broking and IndiaBulls from stock market operations and 12 DPs from opening fresh demat accounts.

UNI