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bpr

Well-Known Member
Karvy case: SAT halts further transfer of client securities after lenders challenge SEBI decision
The banks have sought immediate freezing of the securities transferred to clients' accounts. HDFC Bank has lent Rs 400 crore to Karvy based on these pledged shares


The tribunal further directed SEBI to hear out the lender's concerns by December 4 and pass an order by December 10.

NSDL on December 2 transferred securities worth Rs 2,013.77 crore to over 83,000 clients of the affected 90,000 Karvy investors. Most of the remaining accounts are in dispute with Karvy Stock Broking, so they may get their money/securities after clearing dues with Karvy.

This SAT ruling now puts a question mark on the receipt of securities for these investors.

"Bajaj Finance had lent Rs 100 crore after SEBI's June circular mandated segregating client and proprietary accounts. This circular clearly states that financial institutions cannot grant loans against client pledged shares," a source told Moneycontrol.

This could indicate that Bajaj Finance does not have a strong claim in the case.

Another source stated that SAT does not have the power of invocation, which rests with higher courts.

HDFC Bank, ICICI Bank challenge SEBI move

Separately, HDFC Bank and ICICI Bank have also approached SAT contesting SEBI's decision.

HDFC Bank has lent Rs 400 crore to Karvy based on these pledged shares.

The counsel for the banks sought immediate freezing of all securities that have been transferred to client accounts. "Pledged shares cannot be transferred without consent of the banks," the counsel said.

The counsel further argued that going forward banks will be forced to seek additional collateral from all brokers due to SEBI's December 2 action.



https://www.moneycontrol.com/news/b...urther-transfer-of-client-shares-4695151.html
We have too many quasi judicial body ...it is just crazy and everything can be appeeled in higher instution ...and matter can be delayed for a long long time. This is used by companies to their advantage .

here is a few
NCLAT - National Company Law Appelete Trubinal
NCLT - National Company Law Trubinal
SAT- Securitries Appalete Tribunal

Not so recently It took forever(more than 2 years ) for ArcelorMittal's to take over Essar Steel in their bankruptcy proceeding just cause the promoter kept on appeling ...first NCLT and then NCLAT and then it went to supreme court. And we wonder why we are not getting investment.
Why not go to supreme court directly and save time


Again the telecome hassle they knew what they are doing but kept fiighting the govt and after 15/20 years judgement came from supreme court.

Recently there is a fight where sebi says SAT does not have power over them and SAT disagrees and that fight is going on.The recent case where a ILFS defulted on pledged securities fraud where SEBI gave some order and SAT stalled it ...

And now this thing ....
 

vikas2131

Well-Known Member
We have too many quasi judicial body ...it is just crazy and everything can be appeeled in higher instution ...and matter can be delayed for a long long time. This is used by companies to their advantage .

here is a few
NCLAT - National Company Law Appelete Trubinal
NCLT - National Company Law Trubinal
SAT- Securitries Appalete Tribunal

Not so recently It took forever(more than 2 years ) for ArcelorMittal's to take over Essar Steel in their bankruptcy proceeding just cause the promoter kept on appeling ...first NCLT and then NCLAT and then it went to supreme court. And we wonder why we are not getting investment.
Why not go to supreme court directly and save time


Again the telecome hassle they knew what they are doing but kept fiighting the govt and after 15/20 years judgement came from supreme court.

Recently there is a fight where sebi says SAT does not have power over them and SAT disagrees and that fight is going on.The recent case where a ILFS defulted on pledged securities fraud where SEBI gave some order and SAT stalled it ...

And now this thing ....
This bureaucracy is responsible for bankruptcy of india in 1991 and they would force us again on same path if not stopped soon .
 
NIFTY

Continuation Boxes Are generally 1.5 -2 Month Long, if we Are In One Such Box!!

Looks like a long time since the last box.
 
Does anybody know for sure which entity took the loan? Some reports suggest it was the stock broking entity, others report it was a real estate entity. There are also reports that the (demat?) account pledged with banks is not on the balance sheet/accounts of the entity which took the loan. Where was the due diligence by the banks during the loan disbursal? Blame spread all around - Karvy, Bajaj Finance, other lenders. Karvy clients shouldn't have to pay for a massive failure in regulation and corporate self regulation.

I'm curious what they managed to lose hundreds of crores on in a few months? Takes some special trading ability to pull that off. Or were there no significant losses?
 

siddhant4u

Well-Unknown Member
Does anybody know for sure which entity took the loan? Some reports suggest it was the stock broking entity, others report it was a real estate entity. There are also reports that the (demat?) account pledged with banks is not on the balance sheet/accounts of the entity which took the loan. Where was the due diligence by the banks during the loan disbursal? Blame spread all around - Karvy, Bajaj Finance, other lenders. Karvy clients shouldn't have to pay for a massive failure in regulation and corporate self regulation.

I'm curious what they managed to lose hundreds of crores on in a few months? Takes some special trading ability to pull that off. Or were there no significant losses?
on top, where are clients who lost these shares? are they on twitter or all are institutional players?
 
Maharashtra scraps award of :banghead::banghead:horse fair:banghead::banghead: contract to Gujarat firm

In the first significant reversal of a decision taken by the previous BJP-led regime in Maharashtra, the state government has ordered the cancellation of a Rs 321-crore contract awarded to a Gujarat-based event management company for organising an international horse fair that came under the scanner for “serious financial irregularity”.

On December 26, 2017, the state-run Maharashtra Tourism Development Corporation (MTDC) Ltd entered into an agreement with Ahmedabad’s Lallooji and Sons to “conceptualise, design, execute, manage, and operationalise” the Sarangkheda Chetak festival in Nandurbar on a turnkey basis. The firm had previously been associated with the Kumbh Mela and Rann Utsav.

But on November 28 this year, the day the new Sena-NCP-Congress government led by Uddhav Thackeray was sworn in, the state’s tourism department, following orders from Chief Secretary Ajoy Mehta, directed the “immediate cancellation” of the contract.

“The agreement and the Expression of Interest that was floated was entered into without the government’s sanction. As it isn’t as per the Centre’s norms as well, it amounts to a serious financial irregularity,” said Under Secretary (Tourism) S Lambhate.

https://indianexpress.com/article/i...-horse-fair-contract-to-gujarat-firm-6147631/
This doesn't seem that irrational a decision. A 321 crore international horse fair in the middle of nowhere does seem fanciful. Perhaps money better spent on an irrigation project or schools/teachers.

Too lazy to look it up - anyone know who won this constituency (in which Nandurbar is situated) in the recent election?
 
For instance this article is so full of contradictions it'll make your head hurt.

https://www.livemint.com/market/sto...bank-icici-also-go-to-sat-11575354685940.html

Sebi has estimated the total exposure of lenders to Karvy at ₹2,800 crore, of which Bajaj Finance has an exposure of ₹345 crore as per a copy of the petition reviewed by Mint.
Karvy took loans to the tune of ₹600 crore by pledging securities worth more than ₹2,300 crore of 95,000 clients with lenders.
How is the exposure 2.8k when the loans are 0.6k? Also, that's a severe haircut (0.6k/2.3k ~ 75% haircut) - Bajaj Finance must've known something's up - probably why they're so eager to enter the brokerage business themselves :p

The petition also says Karvy had given a false undertaking to Bajaj Finance that these securities belonged to the brokerage.
A 345 cr disbursal based on an undertaking perhaps without a cursory check of the applicant's balance sheet! That would be a new record level of retardation.
 
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siddhant4u

Well-Unknown Member
This doesn't seem that irrational a decision. A 321 crore international horse fair in the middle of nowhere does seem fanciful. Perhaps money better spent on an irrigation project or schools/teachers.

Too lazy to look it up - anyone know who won this constituency (in which Nandurbar is situated) in the recent election?
Nandurbar MLA was State Minister for Medical Education and Horticulture in last govt BJP's Gavit.
 

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