Amitabh Chaturvedi, who was a part of Karvy Financial Group’s board, on Friday stepped down from his current position to roll out a new venture.
Last year, Chaturvedi resigned as Chief Executive Officer (CEO) of Karvy Stock Broking Ltd, the financial services arm of Karvy Group, but continued to be on the board of other group companies.
He will announce about his next move soon, the company said in a statement.
It further added Chaturvedi feels that he should set up a new-age financial services platform with a large customer base to drive India's economic growth.
Karvy Group appointed Chaturvedi as part of its corporate restructuring exercise on December 31, 2019, following the company's demat account scam just in the earlier month of the same year.
Prior his joining to Karvy, Chaturvedi had worked with Essel Group, Dhanalakshmi Bank, Reliance (now Nippon) Mutual Fund and ICICI Bank.
The rejig came a little over a month after stock market regulator barred Karvy Group flagship KSBL for pledging securities of its clients with lenders without approval from those particular clients, to borrow funds.
This was a violation of the newly implemented Sebi guidelines, which went into effect on October 1, 2019.
HDFC Bank, Bajaj Finance, Aditya Birla Finance, and IndusInd Bank had pledged the securities of around 95,000 customers to raise over Rs 2,300 crore from various banks and financial institutions, the statement said.
Karvy had planned to sell part of its assets to raise funds to pay off its loans, release pledged shares, and repay KSBL's clients to get out of the bad phase.
As part of this strategy, it sold a minority investment in Karvy Fintech, one of the industry's leading registration and transfer agents. Since then, the company has been rebranded KFin Tech, and it is now majority-owned by global private equity firm General Atlantic.
