SEBI Extends Karvy Investors Claim Filing Deadline to December 31, 2025

As per news reports, the Securities and Exchange Board of India (SEBI) has extended the deadline for Karvy Stock Broking Ltd (KSBL) investors to submit their claims. The new deadline is December 31, 2025, compared to the earlier date of June 2, 2025.

NSE Declaration of Default

KSBL was declared a defaulter by the National Stock Exchange (NSE) on November 23, 2020. After this, investors were asked to file claims against the broker. The extension is meant to give more time to those who have not yet submitted their claims.

Filing Process and Support

As per news reports, investors can file claims with the NSE. For help, they can call the toll-free number 1800 266 0050 or email defaultisc@nse.co.in. SEBI has advised all pending claimants to use the extended period and complete the process before the new deadline.

In April 2023, SEBI barred KSBL and its Chairman and Managing Director, C. Parthasarathy, from the securities market for 7 years. Along with this, a monetary penalty of ₹21 crore was imposed on them for misusing client funds.

Misuse of Client Assets

Investigations revealed that KSBL had pledged securities of clients obtained through Power of Attorney (PoA)arrangements. The broker raised large sums from financial institutions on these pledges, assuring interest payouts. Instead, the funds were diverted to related entities, leading to defaults in returning client holdings and funds.

The misuse of PoA agreements was part of a mobilisation drive by KSBL. By diverting pledged assets, the firm failed to meet commitments to investors, which led to regulatory violations and subsequent action.

Read More: SEBI Plans to Increase Tenure of Equity Derivatives to Ensure Market Stability! 

Conclusion

With the new deadline set for December 31, 2025, investors now have more time to file their claims. Those who have not done so are expected to complete the process within the 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.