While margin funding deals help drum up short-term trading volumes, they’re inimical to the interests of long-term investors as they undermine trust and create systemic risks


SEBI’s ex-parte interim order against Karvy Stock Broking, barring it from accepting new clients and asking depositories not to execute select instructions from it, has created considerable uncertainty for over two lakh clients of the broking firm, while sending ripples of unease across the securities market. However, from a reading of its interim order, SEBI appears quite justified in its actions to clean up this murky area of stock trading in India..............BL