NDTV to file appeal against Sebi order imposing Rs 12 lakh fine for disclosure lapses
NDTV to file appeal against Sebi order imposing Rs 12 lakh fine for disclosure lapses

Mumbai: Axis Bank Ltd today approached the Securities Appellate Tribunal against the decision of National Securities Depository Ltd and the Securities and Exchange Board of India to transfer pledged shares to beneficiaries in the Karvy Stock Broking case.

NSDL had issued a communication to Axis Bank stating that shares pledged with the bank that were held in Karvy Stock Broking's demat account will be kept in abeyance.

Axis Bank has contended that this communication was illegal and without jurisdiction. It has also contended that SEBI's ex-parte order dated Nov 22 pertained to Karvy's other demat account.

Therefore, the bank has sought the tribunal's direction against the depository to prevent it from taking any further action in connection with the pledged shares.

Axis Bank claimed that it had extended an overdraft facility of 1 bln rupees against shares to Karvy Stock Broking, out of which an amount of 800 mln rupees, which includes interest, is due.

SEBI's order does not apply to the account in which shares pledged to Axis Bank are held. Similarly, the securities are not fully paid as beneficiaries owe money to Karvy Stock Broking, Axis Bank's counsel Gaurav Joshi said.

However, senior counsel of NSDL Somasekhar Sunadaresan claimed that they had not received a petition copy.

Last week, SAT ordered the aggrieved banks, including HDFC Bank and ICICI Bank, to seek directions from whole-time member of SEBI on their plea and pass an appropriate order by Dec 12.

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