‘There will be no impact on Karvy Private Wealth after Karvy Stock Broking episode’

Abhijit Bhave, CEO, Karvy Private Wealth said that while the wealth management company is a division of Karvy Stock Broking, it is not directly impacted by the current episode.

In the aftermath of the crisis at Karvy Stock Broking, many investors have been questioning the involvement of the other Karvy Group companies like Karvy Private Wealth.

Karvy Private Wealth is in the business of offering wealth management solutions to HNI, UHNI & family office clients. 

Market regulator SEBI recently banned Karvy Stock Broking from taking on new clients after it discovered a fraud of Rs.2,000 crore.

To understand what would be the impact on its investors Cafemutual spoke to Abhijit Bhave, CEO, Karvy Wealth, who said, “Unlike some other banks and wealth management firms, who primarily focus on investments in products manufactured by their own group companies, nearly all our clients have a large proportion of their investments in third party products. So there would not be too much of a material impact on the Karvy Private Wealth clients’ portfolios except those with stock portfolios and it is business as usual for us.”

Responding on how they are dealing with clients queries post SEBI’s order, he said, “I would not say our clients are exactly panicking at the moment but yes they are concerned with the media coverage about Karvy Stock broking. We have been regularly communicating with our clients and addressing all their queries.”