Karvy scam: Sebi bans company & promoter

HYDERABAD: Nearly three-and-a-half years after the Karvy Stock Broking (KSBL) scam came to light, Sebi has, in its final order, banned the stock broking firm as well as its promoter Comandur Parthasarathy from the stock markets for seven years. The markets regulator has also slapped a total penalty of Rs 21 crore - a fine of Rs 13 crore on KSBL and Rs 8 crore on Parthasarathy.

In addition to this, Sebi has restrained Parthasarathy from holding the post of director, key managerial position or associating himself in any capacity with any listed public company for a period of 10 years.

Sebi's whole-time member S K Mohanty, who issued the final order, also ordered Karvy Realty (India), or KRIL, and Karvy Capital (KCL) to return the nearly Rs 1,443 crore diverted to them to KSBL within a period of three months. If case of failure to return the money, the markets regulator has directed the NSE to take control of KRIL and KCL's assets.