Karvy worried over SEBI embargo in opening demat accounts

Lucknow, May 29 (UNI) India's leading stock broking firm Karvy today expressed worries on the embargo imposed on it by the Securities Exchange Board of India (SEBI) in opening new demat accounts and participating as registrars to IPOs.

''The senior management is in discussion with legal counsels and we are exploring various options in the matter,'' J Ramaswamy, vice president (corporate affairs), Karvy, said.

On Friday, SEBI had issued an order on various entities of the Karvy Group in the recent IPO/demant issues.

Commenting on the development, Mr Ramaswamy, however, said the SEBI order had come as a breather with respect to the continuance of servicing Karvy's 7.25 lakhs DP customers for the Depository Participant business.

''It is also positive to the extent that the mutual fund registry business has been kept out of the purview of the order. This means Karvy Mutual Fund registry can service new AMCs and act as regitrars for NFOs.'' He said the restraint on opening new demat accounts and the mandate for acting as regisrtrar for IPOs would be decided after the completion of the probe proceeding inititaed by SEBI.

SEBI has appointed an inquiry officer for this purpose.

''We would like to thank SEBI for giving us an opportunity to be heard and also for clearing all ambiguities and an order which has helped restore confidence of our DP customers.

Mr Ramaswamy claimed Karvy on an average is visited by 60,000 investors across the country for various financial services and we thank each one for their support and having patience with us during this time.

''There have been innumberable mails and letters that we received expressing support and assuring continuance from our custormers, which has actually given us the much required grit and determination in tiding over these issues.'' ''We thank the media both print and electronic for the support and good wishes that they have extended to us during this time, which we deeply appreciate.'' UNI VS MP RK2012