The National Stock Exchange of India Ltd (NSE) on Monday suspended membership of Karvy Stock Broking Ltd due to non-compliance of regulatory norms with the Securities and Exchange Board of India (Sebi) and exchange. Apart from NSE, the BSE, Multi Commodity Exchange of India (MCX) and MSEI have also suspended the license of Karvy.

The action comes after Sebi on November 22 barred it from taking on new clients over alleged misuse of clients’ securities worth over Rs 2,300 crore. The regulator had also directed the exchanges to initiate proceedings against the brokerage firm.

As per the reports, investors with the firm will be able to migrate to other brokers.

Earlier, Karvy had approached Securities Appellate Tribunal (SAT) seeking relief to allow the company to tender securities for settlement. But Sebi rejected firm’s request, fearing further misuse of clients’ Power of Attorney (PoA), which resulted into their incomplete settlement process of the shares.

Later, the SAT had asked Sebi to decide whether the brokerage firm could be given interim relief for use of PoA. The tribunal had directed the capital markets regulator to pass an order on Monday.

Sebi directed the investors not to act upon any instructions laid by the Karvy Stock Broking in pursuance of PoA give to the firm by the client with immediate effect.

(With input from agencies)