Date:10/01/2007 URL: http://www.thehindubusinessline.com/2007/01/10/stories/2007011005661500.htm

Back SAT dismisses appeal filed by Karvy against SEBI order

Our Bureau

Mumbai , Jan. 9

The Securities Appellate Tribunal (SAT) on Monday dismissed the appeal filed by the Karvy Group against the SEBI order restraining it from opening new demat accounts following its involvement in the IPO scam.

SAT has ruled that no fault can be found with the said order. The tribunal maintained that since the enquiry is pending the board has the power to pass the impugned order restraining the appellant from opening fresh demat accounts and from carrying on proprietary trades as a stock broker.

The Hyderabad-based Karvy, which was indicted by SEBI in its interim report on the scam, moved the tribunal against the order issued by the regulator in May last year. SEBI, probing the multi-crore demat scam, had restrained the company from opening new demat accounts till a final order is passed.

SEBI had also restrained the broking arm of Karvy Group from undertaking any proprietary trades in securities, including off-market trades, pending the enquiry.

SAT has, however, directed that the enquiry be completed and recorded not later than March 31, 2007. The board will then take a final decision thereon in accordance with the law within two months thereafter.