Karvy Stock Broking, one of the largest brokers who catered to the retail segment of investors, has now been declared as a defaulter by the National Stock Exchange (NSE). This is happening nearly a year after it came to the light that they had defaulted on their payment obligations.

Neither market regulator SEBI nor NSE has put out the exact amount that Karvy still owes to its investors. But according to the experts and regulatory officials, the broker still owes several hundred crores of rupee in dues. The NSE has now expelled Karvy from its membership and declared it a defaulter. In November last year, SEBI barred Karvy from taking in new clients after finding out that they had transferred shares worth more than ₹2,300 crores of over 95,000 clients to their account and using them to avail bank loans.

Last week, the NSE said it had settled client claims worth ₹2,300 crores. However, according to regulatory officials, several thousand investors are still claiming money from Karvy. The reason for that being the shortage of the investor protection fund (IPF), which is used to settle client dues. When stockbrokers default on their payments, then it becomes the responsibility of the stock exchanges to settle their claims. But the settlement of client claims can only happen after an exchange declares the broker as a defaulter.