The National stock exchange on 02 December issued a circular stating that the NSE membership of Karvy Stock Broking was being suspended with immediate effect. You can refer to the circular on the NSE website at the following link.

https://www.nseindia.com/content/circulars/COMP42798.pdf

This means that Karvy will not be able to put any trades through any of the segments of NSE including equity, F&O, currency derivatives, MFSS, interest rate futures and also commodities. All these are being suspended with immediate effect. In addition, BSE has also suspended Karvy Stock Broking from all its segments. However, MCX has not yet taken any decision on its commodity segment.

This suspension was necessitated after the NSE, in its audit, had discovered that Karvy had pledged shares worth Rs.2300 crore belonging to clients to banks for raising finance. This was misuse of the power of attorney given to Karvy by the customers. According to the NSE order and also the SEBI order, the broking house had been given 21 days to submit their explanation.

If you are trading customer, your first attempt must be to get the outstanding funds (although that may take time now) and the outstanding shares into your demat (assuming that it is not already pledged to a third party). SEBI decision on this subject is awaited.