Sebi Extends Karvy Claim Deadline to March 2026

New Delhi, Dec 9 (PTI) Markets regulator Sebi on Tuesday extended the deadline till March 2026 for investors of defaulted broker Karvy Stock Broking Ltd (KSBL) to file their claims.

Earlier, the deadline was December 31.

KSBL was declared a defaulter by the National Stock Exchange (NSE) on November 23, 2020. Following this, investors were invited to submit claims against the defaulting broker, with the final date for submission set as June 2, 2025.

Following the response to the Sebi announcement in May 2025, which urged investors to lodge their claims, the deadline for filing claims with NSE was extended to December 31, 2025.

"Given that considerable investors have lodged their claims pursuant to the awareness created and extension provided for inviting claims, it has been decided to further extend the deadline upto March 31, 2026," Sebi said in a statement.

Investors have been urged to take note of the deadline and are urged to file their claims before the deadline, if not lodged already, Sebi said in its statement.

For assistance, investors can reach out to NSE by calling its toll-free number 1800 266 0050 (select IVR option 5) or by emailing at defaultisc@nse.co.in, it added.

In April 2023, Sebi barred KSBL and its Chairman and Managing Director C Parthasarathy from the securities market for seven years and also imposed a penalty of Rs 21 crore on them for misappropriating clients' funds by misusing the Power of Attorney given to the broking firm.

This action emanated from a massive asset mobilisation drive by KSBL, in which it raised huge funds from financial institutions. The broking firm did so by pledging clients' securities -- secured through the Power of Attorney granted to KSBL -- with promises of paying interest.

However, instead of fulfilling these commitments, the funds were misappropriated and diverted to entities connected with KSBL, ultimately leading to defaults in settling client securities and funds, in violation of regulatory norms.