SAT stays SEBI order against IIFL Securities prohibiting from onboarding new clients for two years as a stock broker

IIFL Securities, one of India's leading broking firms has said that the Securities Appellate Tribunal (SAT) has stayed the Securities Exchange Board of India (SEBI)'s Order dated June 19, 2023 prohibiting IIFL Securities from onboarding new clients for a period of two years in respect of its business as a stock broker.

Meghal Shah, Company Secretary, IIFL Securities said, the SEBI order prohibiting the Company from onboarding new clients has been stayed by the Hon'ble SAT. SAT took note that the interim orders were passed in the earlier appeals emanating from the same inspections wherein an Adjudicating officer had levied a monetary penalty and the same was pending for consideration by the Tribunal. Accordingly, SAT clubbed the present matter with pending appeals.

IIFL Securities would like to reiterate SEBI's own assurance in its very Order imposing restrictions that even SEBI has not found anything wrong subsequent to the Enhanced Supervision Circular becoming effective in 2017. The said Order records "I find no instance of misuse of clients funds by the Noticee placed before me which has occurred subsequent to implementation of Enhanced Supervision Circular dated September 26, 2016;"

IIFL Securities reiterates its commitment to serve its clients as it always has in full compliance with the letter and spirit of the law.

Link to the detailed SAT order is here: (https://sat.gov.in/english/pdf/E2023_JO2023527_3.PDF)

Shares of IIFL Securities Limited was last trading in BSE at Rs. 62.98 as compared to the previous close of Rs. 60.31. The total number of shares traded during the day was 260314 in over 1744 trades.

The stock hit an intraday high of Rs. 65.79 and intraday low of 60.00. The net turnover during the day was Rs. 16549350.00.

Source : Equity Bulls

Keywords

IIFLSecurities INE489L01022 SEBIOrder SAT StayOrder NewClients Onboarding