IIFL Sec gets K arvy's demat a/cs, Axis Sec its trading a/cs

Axis Securities Ltd has emerged as successful bidder to acquire trading accounts held by Karvy Stock Broking Ltd with the National Stock Exchange, BSE, and Metropolitan Stock Exchange of India, the company said today.

Once the transfer is complete, the customer base of Axis Securities will rise to over 3.6 mln from 2.5 mln currently.

Axis Securities is a 100% subsidiary of Axis Bank. In November 2019, the Securities and Exchange Board of India barred Karvy from taking new brokerage clients after it was found that the brokerage firm had allegedly misused clients' securities to the tune of more than 20 bln rupees.

The firm misused client collateral for its own trades. After discussion with regulators, depositories and stock exchanges had invited bids for the transfer of Karvy Stock Broking’s trading and demat accounts.

Earlier Wednesday, IIFL Securities Ltd said it had emerged as the successful bidder to acquire 1.1 mln demat accounts held by Karvy Stock Broking with assets under management of around 3.01 trln rupees with Central Depository Services Ltd and National Securities Depository Ltd.

Shares of Axis Bank on Wednesday ended 4.7% higher at 749.40 rupees on National Stock Exchange.

The customer base of Axis Securities will rise to over 3.6 million from 2.5 million currently