← Karvy Stock Broking

2019–2020 Karvy Stock Broking — SEBI/NSE action over pledge/misuse of client securities (~95k clients cited in press)

2019 95.0K records affected Share on X

Data compromised

Client securities positions and brokerage relationship metadata in supervisory narratives

Technical writeup

Nov 2019 SEBI ad‑interim action and subsequent depository/clearing remediation focused on Karvy misuse of client demat pledging to raise group financing—a custody and control failure often bucketed with market‑integrity “breach of trust” even though it is not a classic database ransomware attack.

Root cause

Unauthorized use of client assets / control breakdown at broker layer

References