IIFL, Axis bag Karvy’s trading, demat accounts

IIFL Securities has won the bid to acquire about 110,000 demat accounts held by Karvy Stock Broking, while Axis Securities has emerged the successful bidder for Karvy’s trading accounts (broking accounts).

This was the result of a formal bidding process organised by the National Stock Exchange of India (NSE), BSE, and MSE.

“This is to inform you that IIFL Securities has emerged as the successful bidder for demat accounts held by Karvy with NSDL and CDSL. The said transfer of demat accounts is subject to remittance of the bid amount and submission of the necessary documents in relation thereto,” IIFL Securities said in an exchange filing.

The transfer of trading accounts is subject to the remittance of the bid amount and submission of the necessary documents.

Once the process is complete, the customer base of Axis Securities will surge from 2.5 million to over 3.6 million, the brokerage said in a note. The demat accounts of IIFL Securities will rise to over 1.38 million, the third largest after Zerodha and RKSV Securities.

“This transfer will help broking clients of Karvy to continue access to the securities market. They will be able to take the benefit of the robust trading platform of Axis Securities (ASL) and avail various products and services currently enjoyed by more than 2.4 million ASL customers,” Axis Securities said in a note on Wednesday.

R Venkataraman, chairman, IIFL Securities and Copromoter IIFL Group, said, “This will allow us to serve over 110,000 customers whose accounts have been frozen for over a year. With a countrywide network in 2,500 locations, we will be able service the accounts from day one.”

The NSE, BSE, and Metropolitan Stock Exchange (MSE) had issued a circular, dated February 6, to transfer the trading and demat accounts held by Karvy Stock Broking (Karvy) to another member/ participant through a formal bidding process based on laid down eligibility criteria.