This came as a huge relief to more than 82,000 clients of Karvy getting back shares estimated at Rs 2,000 crore.
Over last few days, there has been a huge uncertainty around what would happen to the shares fraudulently pledged by Karvy (belonging to its clients) to banks and the finance companies to obtain funds for it’s own real estate business. The total amount is estimated to be Rs 2,300 crore.
Whereas, the banks and finance companies claimed rights over the shares as security for the loans that they had given to Karvy, the actual owners claimed theirs given their rightful ownership.
Finally, on Monday, as per sources, under direction from SEBI, the depositories transferred the majority of securities back to the client’s dmat accounts.
It is expected that lenders are gearing up for a legal challenge to the above move.