NSE extends deadline for investors to file claims against Karvy Stock Broking
New Delhi, Dec 5
The National Stock Exchange on Friday announced an extension, to March 31, 2026, of the deadline for investors to file claims against defaulting broker Karvy Stock Broking Ltd, following advice from market regulator SEBI.
The earlier timeline for filing claims was up to June 2, 2025, the statement said.
Karvy was declared a defaulter by the exchange on November 23, 2020. As per NSE bye-laws, rules and regulations, claims against the default broker were invited from investors.
The exchange urged the investors to take note of the above timelines and urged them to file their claims online at the NSE website (https://www.nseindia.com/complaints/details-to-be-provided-for-lodging-claims) before the stipulated timeline, if not lodged already.
Alternatively, the claim form, duly filled and signed, along with the relevant documents, may also be sent in physical form to the Defaulters’ Section at the offices of the Exchange, the statement said.
For this purpose, the format of the claim form may be downloaded from https://www.nseindia.com or obtained from the corporate office at Mumbai or the regional or branch offices of the exchange.
"However, the Exchange urges all claimants to make use of the online claim lodgement facility as mentioned above for better tracking of your claims," it noted.
An investigation into Karvy Stock Broking Ltd. found that the firm failed to report a depository participant in filings with regulators and exchanges. The investigation also revealed fraudulent transfers of client shares into Karvy’s undisclosed demat account and subsequent pledges of those securities with lenders or banks.
Through the illegal pledging of client shares, Karvy is estimated to have obtained loans worth Rs 2,873 crore. Funds raised were credited to six Karvy bank accounts designated as “stock broker‑own accounts†rather than stock broker‑client accounts, and those accounts were not reported to the market regulator.
— IANS
Reader Comments
Good step by SEBI and NSE. But let's be honest, the fact that Karvy could misuse ₹2,873 crore of client money shows serious loopholes in the system. The extension is needed, but stronger preventive measures are needed more. ðŸ§
Finally some good news for investors. The online claim portal is the way to go - physical forms get lost in our system. Hope everyone who lost money files their claim. Justice delayed, but hopefully not denied.
As an NRI investor, this is very helpful. The extra time allows for coordinating documents from India. The online tracking facility mentioned is crucial for peace of mind. Thank you for the update.
The sheer scale of the fraud is shocking. "Undisclosed demat account" and pledging client shares... this erodes trust. While the extension is welcome, the speed of the actual recovery process for claimants is what matters most now.
A respectful criticism: This should have been announced much earlier. Many may have given up hope after 2020. Proactive communication from exchanges to affected investors directly would build more confidence than just a press release.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.