IIFL Securities gains 11 percent as SAT sets aside SEBI order

Shares of IIFL Securities opened 11 percent higher at open on December 8, a day after the Securities Appellate Tribunal (SAT) set aside a Securities Exchange Board of India (SEBI)’s order. At 9:20 am, the stock was trading at Rs 131.20.

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In an exchange filing, the company said the Securities Appellate Tribunal (SAT) has set aside SEBI’s order dated June 19, 2023 prohibiting IIFL Securities from onboarding new clients for two years in respect of its business as a stock broker.

In the latest order, SAT has said there has been no misuse of client funds and "since there is no failure on the part of the appellant to segregate monies of the client nor monies of the client have been misused by the appellant for its own purposes, no penalty could be imposed." However, it added that IIFL Securities failed to change the nomenclature of the bank
accounts of the client as required to be done under the 1993 circular.
"Considering the aforesaid that it is only a technical breach, we are of the opinion that in the given circumstances for the two show cause notices, a penalty of Rs 20 lakh in total would be sufficient for the purpose of this case," it concluded.