SEBI Imposes Rs 11 Lakh Fine on IIFL Securities for Regulatory Breaches

SEBI has fined IIFL Securities Rs 11 lakh for violating stock broker rules and regulatory norms. The inspection, covering April to July 2022, highlighted failures in client fund settlements, reconciliation of securities, and accurate reporting. Despite corrective actions, multiple breaches were confirmed by SEBI's adjudicating officer, Barnali Mukherjee.

In a significant regulatory action, the Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 11 lakh on brokerage firm IIFL Securities. The penalty follows a series of violations encompassing stock broker rules and other regulatory norms.

SEBI conducted an inspection of IIFL Securities from April to July 2022 to scrutinize various compliance measures. The inspection led to the issuance of a show cause notice to IIFL Securities on April 15, 2024, citing multiple breaches, including failures in monthly and quarterly fund and securities settlements due to technical errors.

Despite the brokerage's subsequent corrective measures, SEBI's Adjudicating Officer Barnali Mukherjee found several compliance oversights, such as incomplete reconciliation of client securities and incorrect reporting. These breaches, coupled with unexplained penalizations on short margin reporting, substantiated SEBI's decision to impose the fine.

(With inputs from agencies.)