Karvy DP, which is already busy tackling a ban slapped on it by the Securities and Exchange Board of India, is now busy warding off campaigning to poach its clients.
"Other depositories, like Indiabulls, are trying to attract our clients by campaigning before our offices everywhere. But luckily we have a large client base and little of them have transferred their accounts," a Karvy official told PTI.
Indiabulls Securities, which was also banned from dealing in proprietory accounts by Sebi, got some respite from the regulator, which deferred a ban on the firm, pending verification of clients accounts.
A representation from Karvy Group had today gone to Sebi for submitting its appeal and is awaiting a response from the regulator, he added.
On Thursday, April 27, 2006, market watchdog Sebi came out with its interim order on IPO scam pointing out, Karvy as the depository participant with the most number of fictitious accounts, contributing to 80 per cent of those found out in NSDL.
"Karvy DP alone had 29,309 afferent accounts, representing about 80 per cent of the total afferent accounts in NSDL," the Sebi order said.
The regulator had ordered Karvy to stop trading through its proprietory account and gave it 15 days for carrying out clients' transaction in the routine course.