Sebi to come out with circular to prevent Karvy-like incidents: Ajay Tyagi

Sebi chief Ajay Tyagi on Monday said it will soon come out with a circular to prevent incidents like Karvy Broking Services Ltd (KSBL), which had allegedly misused clients's securities. Speaking to reporters after Sebi board meeting here, Tyagi said also said KSBL has told the National Stock Exchange that it would pay fund shortfall of Rs 678 crore by March by selling stake in a company.

"We will wait and see," Tyagi said. In November, the watchdog barred KSBL from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients' securities to the tune of more than Rs 2,000 crore.