The Securities and Appellate Tribunal (SAT) has reserved its order on the plea made by Axis Bank in the Karvy Stock Broking matter.
The lender had sought SAT's intervention following National Securities Depository's (NSDL) move to freeze the shares pledged by Karvy Stock Broking.
The brokerage had pledged shares to the lender against an overdraft facility of Rs 100 crore.
In its November 22 interim order, the Securities and Exchange Board of India (Sebi) had restrained transfer of securities from Karvy's account with immediate effect, except to those beneficial owners or clients, who had cleared all payments pertaining to the securities.
Axis Bank submitted that Karvy Stock Broking owed Rs 80 crore to the bank. However, as a result of the freeze, the bank was not able to invoke the pledge. The bank also added Sebi, Central Depository Services Ltd. and National Stock Exchange as parties to the case.
In earlier pleas, even though SAT heard the arguments made by the lenders, it decided against giving immediate relief to them. The SAT had directed Sebi to give final order in the matter.
The bench had also rapped appellants for approaching the tribunal on December 2 when the Sebi order was passed on November 22. It observed that "a lot of water has flown under the bridge" during this time.
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