Karvy Group, a month after SEBI barred it from taking new clients, has announced that it is in the process of restructuring its overall business into two verticals: Financial Services and Non-Financial Services.
The restructuring will see stock broking, wealth management, commodities trading and investment banking among others come under the ambit of Financial Services.
Non-Financial services will comprise of data management services, data analytics, market research and allied businesses.
Securities and Exchange Board of India (SEBI) barred Karvy in November from taking in new clients after a preliminary report by NSE stated that the stockbroker allegedly misused clients’ funds.
The stockbroker has been accused of swindling nearly Rs 2,000 crore over three years, up until September 2019. It also allegedly misused the shares of its clients, which it transferred to its own account without running it through the stock exchange, to fund its real estate arm.
As a part of the restructuring process, the company has also initiated a major management reshuffle. The move is expected to improve the overall governance and functioning across the enterprise.
Industry veteran Amitabh Chaturvedi has been appointed as Group CEO - Financial services. According to a statement from the company, Chaturvedi’s mandate will be to completely overhaul the governance processes, ensure best practices and to bring in greater fiduciary discipline to these businesses.
“It gives me immense pleasure to be a part of Karvy, a financial services Group that has been a front runner in the sector for more than three decades. The leadership team will work on making the brand stronger and with fund raising we shall see it reaching new heights,” Chaturvedi said in a statement.
Chaturvedi has previously been associated with leading organizations such as Dhanalakshmi Bank, Reliance AMC, ICICI and the Essel Group and has over 30 years of experience in the financial services space.
C Parthasarathy, Chairman, Karvy Group, said, “We welcome and are extremely pleased to announce the appointment of Mr. Amitabh Chaturvedi as Group CEO - Financial Services. We look forward to scaling new heights under his leadership. His extensive experience and incisive vision of the financial services sector will definitely enhance our brand value.”