India’s Karvy Group said on Tuesday it has appointed a new head of its financial services unit as part of corporate restructuring, a month after the country’s market regulator slapped a ban on its stock broking arm for alleged misuse of client funds.
Karvy named Amitabh Chaturvedi as group chief executive officer of its financial services arm with a mandate to “completely overhaul the governance processes, ensure best practices and to bring in greater fiduciary discipline to these businesses,” the Hyderabad-headquartered firm said in a statement.
The Securities and Exchange Board of India (SEBI) barred Karvy Stock Broking last month after a preliminary investigation by the National Stock Exchange showed the brokerage pledged and sold some of its client securities to raise funds for its own use, without client authorisation and in violation of new rules.
Karvy had then said that there was no “mis-utilisation” of client securities.
Karvy Group is in the process of restructuring its overall business into financial services and non-financial services verticals, it said on Tuesday.
The restructuring will see its stock broking, wealth management, commodities trading and investment banking businesses come under the ambit of financial services, while non-financial services will comprise of data management services, data analytics, market research and allied businesses.
