Karvy Investors Can Now Submit Claims till 31st December as SEBI Extends Deadline
Moneylife Digital Team 22 August 2025
Market regulator Securities and Exchange Board of India (SEBI) has extended the deadline for investors of the defaulted broker, Karvy Stock Broking Ltd (KSBL), to file their claims. Investors now have until 31 December 2025 to submit their applications.
 
KSBL was declared a defaulter by the National Stock Exchange (NSE) on 23 November 2020. Following the declaration, investors were invited to lodge their claims against the broker, with the original deadline set for 2 June 2025. SEBI has now granted an extension to ensure investors do not miss the opportunity to recover their dues.
 
In its statement, the regulator urged investors to take note of the revised timeline and submit their claims at the earliest if they have not already done so.
 
The Karvy case has been one of the biggest brokerage scandals in India. In April 2023, SEBI barred KSBL and its chairman and managing director, C Parthasarathy, from accessing the securities market for seven years. In addition, a penalty of Rs21 crore was imposed for large-scale misuse of client funds.
 
Investigations revealed that KSBL had pledged client securities — obtained through the power of attorney (PoA) provided by investors to raise massive funds from financial institutions. Instead of honouring its commitments, the broker diverted the money to entities linked to the Karvy group.
 
This misappropriation ultimately resulted in defaults in settling client funds and securities, leading to severe violations of regulatory norms. The fallout of the scam has left thousands of investors struggling to recover their investments, with SEBI’s claim window offering a structured mechanism for redress.
 
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