Karvy says completed payouts to clients who complained to PMO on social media

MUMBAI: Karvy Stock Broking, which featured in a section of the media and on social media for delaying in making payouts to its stock market clients because of bad trades undertaken by some of its clients in castor derivatives on commodity exchange NCDEX through the Karvy group’s commodity broking business, has clarified that the stock broking arm has completed the payouts to the complainants and denied that it is under financial stress.

“The exposure that our clients have had in the castor seeds is not much, and most amounts have been collected, and settled from the clients. The amount yet to be collected is around Rs 5 crore, and for the Karvy group, this is not a significant amount. We are confident of recovery of this amount too,” the company said in a release.

“The complaints in Twitter pertain to (i) Dipak Mundra; the payout amount is Rs.614/- and this has already been settled. (ii) In the case of Bindya Shah, the amount payable is Rs 1.59 lakhs, and this has also been paid. (iii) In the case of MKR (Mahendra Kumar Rai) the amount payable is Rs.1 lakh, which has also been paid. (iv) in the case of Gitesh Yeole the amount due is Rs.33,944/- and this has also been paid. Two of these customers have since deleted their Tweets, and, two others have acknowledged receipt of the payment.”

On Saturday and Sunday, we received 53 posts on the Karvy Stock Broking Twitter handle. On an analysis, we have found that these actually pertain to 11 customers. We have checked and we confirm that payments to all of them have been made. The smallest amount that had to be paid is Rs 122.