Sebi Slaps Rs 7 Lakh Fine on Motilal Oswal for Rule Violations
The Securities and Exchange Board of India (Sebi) has fined Motilal Oswal Financial Services Ltd Rs 7 lakh for violations of stock broker and depository participant rules. The penalty was imposed after Sebi's inspection revealed unresolved complaints, incorrect reporting, and mismanagement of client funds and margins.
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- Country:
- India
The Securities and Exchange Board of India (Sebi) has levied a Rs 7 lakh fine on Motilal Oswal Financial Services Ltd for breaching stock broker and depository regulations. The firm has been ordered to settle the fine within 45 days.
This decision follows an inspection conducted in conjunction with stock exchanges and depositories, covering the period from April 2021 to June 2022. The inspection uncovered several infractions, including outstanding client complaints, mishandling of client securities, and incorrect reporting of Margin Trading Funding (MTF) collaterals.
The probe also highlighted one instance of incorrect margin reporting in the capital market segment, five in the currency derivative segment, and instances in the futures and options segment. Funds of 39 active clients were inexplicably sidelined, an error attributed to the non-availability of necessary client details. Sebi deemed these failures as necessitating a suitable penalty.
(With inputs from agencies.)