The capital markets regulator Sebi on Thursday restrained Karvy Investor Services (KSIL) from taking new clients or assignments for violating regulations for merchant bankers and breach of eligibility conditions.
In an ex-parte order, the Securities and Exchange Board of India (Sebi) noted that KISL did not have the necessary infrastructure like adequate office space, equipment and manpower to work as a merchant banker.
Sebi in its inspections found that KISL did not operate from the registered office premises. Sebi noted that the continued presence of such an entity could pose a serious threat to the integrity of the securities market and the interests of investors.
