The National Company Law Tribunal (NCLT) Hyderabad bench on February 8 ordered the management of Karvy Stock Broking not to alienate any assets of the company and its subsidiaries, responding to an application filed by a shareholder.
This comes amid ongoing investigations by various agencies including the police, Securities and Exchange Board of India, Serious Fraud Investigation Office and Enforcement Directorate (ED) into a host of allegations against the company and weeks after the ED took Karvy group chairman and managing director Comandur Parthasarathy and group chief financial officer G Krishna Hari into custody.
Easily search and access all NCLT / NCLAT and IBBI related orders in your Apple iOS / Google Android smartphones. Available for free trial period of 15 days. Click Here to download
The NCLT bench issued the restraining orders in response to a petition filed by Meka Rajini, a minority shareholder of Karvy Stock Broking.
Rajini claimed the tribunal that Karvy was indulging in selling assets and not properly accounting for the proceeds, as the petition said could severely jeopardize the interests of shareholders.
The tribunal in its orders directed Karvy Stock Broking “from alienating any assets including both current assets and fixed assets of the company”.
The NCLT bench also asked the company to bring to its notice any payments to be made to the investors or any other statutory agencies and “seek permission of the bench and only on a case-to-case basis this bench may allow the sale of the assets”.
Responding to the submission of the shareholder that the company was also indulging in the selling assets of its subsidiary companies, the bench ordered Karvy Stock Broking not to “use its majority holding in its subsidiaries to take any decision for selling away the assets”.
