SEBI has extended the timeline for investors of Karvy Stock Broking Ltd (KSBL) to file their pending claims to March 31, 2026, as per PTI report.  

The previous deadline was December 31, 2025, which itself followed earlier extensions issued after SEBI’s call in May 2025 urging investors to submit their claims. The first cut-off for receiving claims had been set for June 2, 2025. 

How the Case Reached This Stage 

KSBL was declared a defaulter by the National Stock Exchange on November 23, 2020. This opened the process for investors to report losses related to unreturned securities and funds.  

The default followed concerns over how the broker handled client assets, particularly securities held under the Power of Attorney given by clients. 

Reason Behind the Extension 

SEBI noted that a sizeable number of investors filed claims after the awareness drives and earlier extensions.  

Given the volume of pending cases, the regulator has provided additional time to allow remaining investors to complete their submissions. SEBI has again asked investors who have not filed yet to take note of the final date. 

Earlier Regulatory Measures 

In April 2023, SEBI barred KSBL and its Chairman and Managing Director C Parthasarathy from the securities market for 7 years and also a penalty of ₹21 crore was also imposed.  

Investigations had found that securities belonging to clients were pledged to raise funds from financial institutions. These funds were later diverted to entities linked to KSBL instead of being used for settlements, resulting in delays and defaults across client accounts. 

Support Channels for Investors 

Investors seeking guidance can contact NSE’s toll-free helpline 1800 266 0050 (IVR option 5) or email defaultisc@nse.co.in. These channels have been set up to handle queries specifically related to the KSBL default and filing requirements. 

Read More: RBI to Infuse Liquidity with $5 billion USD/INR Buy–Sell Swap and OMO Worth ₹1 Lakh Crore! 

Conclusion 

With the deadline now shifted to March 2026, investors affected by the KSBL default have additional time to complete the claim process. The regulator expects pending submissions to be filed within this extended period. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.