SEBI Closes Case Against Karvy Capital And Its Management Personnel
The Securities and Exchange Board of India on Thursday closed the proceedings against Karvy Capital Ltd. or KCL and its management personnel without imposing any penalty in the alternate investment funds case. A show-cause notice was issued to Karvy Capital on June 7, 2024, and an opportunity to be heard was granted to all the noticees.
It was earlier alleged that Karvy Capital Ltd. failed to ensure that Karvy Capital Alternative Investment Trust and KCAP Alternative Investment Fund are in compliance with SEBI regulations.
As per the SEBI investigation, Karvy Stock Broking Limited (KSBL) held nearly 100% of the shares in KCL, making it the primary controlling entity. As per SEBI's regulations, KSBL was required to meet the "fit and proper person" criteria due to its substantial voting rights in KCL. As has been reported earlier, KSBL is not allowed to access the securities market since April 2023 after it was found to be in contravention of regulatory provisions. This restriction was imposed for a period of seven years.
Furthermore, KSBL's assets were under attachment by the Enforcement Directorate in connection with ongoing legal proceedings.
Despite these legal issues surrounding this, KCL made a declaration in Dec 2023, saying that KSBL's regulatory issues meant it could not fulfil the "fit and proper" criteria. The noticees, including KCL, argued that due to multiple legal restraints and lack of an active board at KSBL, divesting the shareholding in KCL was not feasible. This submission was supported by SEBI's own findings, which indicated that no funds had been raised for the AIFs as of March 2023.
After reviewing the submissions and considering the legal impediments faced by KCL, SEBI concluded that the charges against KCL for failing to ensure compliance with the AIF Regulations were not substantiated. As a result, SEBI disposed of the adjudication proceedings without imposing any monetary penalty, marking the end of the case against the noticees.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
Eternal is building a private AI assistant, dark.ai. Swiggy is still working out how to make Instamart pay, with an operating loss of Rs 895 crore in the July-September quarter while Blinkit stayed profitable.
-
Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
