
SEBI got wind of the goings on at Karvy in mid-October when the brokerage used clients funds for proprietary trading. The regulator then carried out a reconciliation exercise of the client accounts.
from Moneycontrol Business News https://www.moneycontrol.com/news/business/here39s-how-karvy-stock-broking-"almost"-dodged-regulatory-lens_13216101.html
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