Markets regulator SEBI has ordered Karvy Stock Broking Ltd (KSBL) and its CMD C Parthasarathy to pay Rs 25 crore within 15 days due to misappropriation of client funds. This follows an earlier fine of Rs 21 crore imposed in April 2023 for misusing clients’ Power of Attorney. KSBL and Parthasarathy face penalties of Rs 13 crore and Rs 8 crore, respectively. Failure to pay may result in asset attachment and potential arrest for Parthasarathy. The case highlights client fund management risks and brokerage firm regulatory compliance.
