Market watchdog Sebi on Tuesday confirmed the ban on Karvy Stock Broking Ltd (KSBL) from taking new clients and directed stock exchanges as well as depositories to take appropriate action against the entity and its directors.

The regulator passed the final order a year after passing an interim order, wherein it had imposed a ban on KSBL for misusing clients’ securities.

KSBL has also been prohibited from alienating any of its assets, except with prior permission of the National Stock Exchange (NSE), till the settlement of claims of investors.

The final order came after the regulator received a forensic audit report from the NSE in the matter. The bourse has already expelled KSBL from its membership and declared the brokerage house as a defaulter.

The directions issued against KSBL in the ex-parte order passed in November 2019 are operating against it till date, Sebi said in the final order.

Confirming the directions issued in the interim order, Sebi said, “Transfer of funds/ securities made by the KSBL to its clients subsequent to Sebi order dated November 22, 2019, would not absolve KSBL or its directors from violations of the provisions of the securities laws, as have been found in the forensic audit report received in the matter”.