Motilal Oswal Financial Services Limited has settled an investigation by the Securities and Exchange Board of India (SEBI) regarding potential front-running activities by certain entities related to the Chaturvedi Group. The company has paid a settlement amount of ₹34.85 lakh to resolve the matter.
The investigation by SEBI aimed to ascertain whether the trades of an entity (i.e., Big Client) were front-run by certain entities i.e., Chaturvedi Group during the period January 1, 2022, to December 8, 2023. To resolve the proceedings, Motilal Oswal opted for a settlement mechanism with SEBI.
The settlement order, dated September 18, 2025, pertains to certain lapses in record maintenance by one of the company's Authorised Persons (AP), Om Securities, while executing trades of Chaturvedi Group entities. The company clarified that opting for the settlement route does not constitute an admission of guilt, and the matter stands resolved.
Motilal Oswal has taken corrective steps to address the observations made during the investigation and has sensitised all Authorised Persons to ensure adherence to applicable rules and regulations.
| Particulars | Details |
|---|---|
| Name of the listed company | Motilal Oswal Financial Services Limited |
| Type of communication received | Settlement Order dated September 18, 2025 passed by SEBI |
| Date of receipt of communication | September 18, 2025 |
| Authority from whom communication received | SEBI |
| Brief summary of the material contents of the communication received | SEBI investigation regarding potential front-running by Chaturvedi Group; Company paid settlement amount of ₹34.85 lakh |
| Period for which communication would be applicable | January 1, 2022 to December 8, 2023 |
| Expected financial implications on the listed company | No material impact apart from the settlement amount of ₹34.85 lakh |
| Details of any aberrations/non-compliances identified by the authority | Gaps in record maintenance by one of the company's Authorised Persons |
| Details of any penalty or restriction or sanction imposed | Settlement amount of ₹34.85 lakh |
| Action(s) taken by listed company with respect to the communication | Company has sensitised all Authorised persons and employees to maintain pre trade consent/ order instructions before placing trades. |
| Any other relevant information | No |
The company affirmed that the SEBI order has no material impact on its financial, operational, or other activities. SEBI has also stated that it will not initiate any further enforcement action against the company for the alleged violations.
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