Pending payments in a month, says co

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It said Sebi had imposed restrictions on opening new customer accounts and on using power of attorney.

It said the shares of Mr Mohan Guruswamy’s wife have been (deposited) in her demat account and priority services are being provided to the customer.

Hyderabad: Following the reports in this newspaper of a number of depositors not getting their money, Karvy Stock Broking Ltd. on Saturday issued a clarification.

It said the shares of Mr Mohan Guruswamy’s wife have been (deposited) in her demat account and priority services are being provided to the customer.

“We have contacted Mr Guruswamy again to explain the position and refreshed his memory with respect to all actions that have been taken by us,” it said. It said the shares of Mr Guruswamy’s wife were not encumbered in any manner and claimed that he “understood the status with respect to his wife’s shares.” The statement of Mr Guruswamy, an economist and columnist, was published on January 9.

It said Sebi had imposed restrictions on opening new customer accounts and on using power of attorney. There were no other restrictions till the NSE temporarily suspended our licence, Karvy said. The company is in the process of making representations to these regulators. With regard to Ms Ramandeep Arora, whose statement was published on January 9, Karvy said some of her client accounts could not be opened since they clashed with the ban imposed by Sebi. The deposits against these accounts were collected.  

In all these cases, since the primary security given to the bankers was removed, all collections were appropriated by the bankers against the liability due to them. This has resulted in a temporary cash crunch, Karvy said. It said the company had effected payment to a substantial number of investors who had credit balances with Karvy.  It said all the issues with respect to payments would be resolved in a month.

The statement said, “We are actively liaisoning with the depositories and the banks in ensuring that all shares are credited to the individual demat accounts.” The pledge on all shares has been removed, barring with one institution and that is being contested at SAT/Sebi.

Karvy said there was absolutely no challenge as far as the holdings of investors are concerned. In all cases where credit has not yet been received, it would happen in a fortnight. “All the shares are safe.”

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