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Market regulator Securities and Exchange Board of India (SEBI) has initiated proceedings against National Stock Exchange (NSE) in the Karvy Stock Broking Ltd (Karvy or KSBL) default matter, the Lok Sabha was informed.
Replying to a question, Anurag Thakur, minister of state for finance, says, "SEBI has initiated proceedings against NSE in the matter of KSBL for violating provisions of SEBI circulars pertaining to monitoring of brokers and oversight of members."
Further, SEBI has already initiated the action against the directors and key management personnel (KMP) of KSBL as per the provisions of SEBI Act, 1992, Securities Contract Regulation Act, 1956, SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 and SEBI (Stock Brokers) Regulation, 1992, the minister says.