SEBI disposes of proceedings against IIFL Securities without issuing directions

The regulator had conducted an inspection of the brokerage for the period from April 01, 2022 to July 31, 2022

The market regulator has disposed off proceedings against IIFL Securities, without issuing any directions, on Friday.

The regulator had conducted an inspection of the brokerage for the period from April 01, 2022 to July 31, 2022, to examine compliance of various requirements under provisions of SEBI (Stock Brokers) Regulations, 1992, and various circulars issued thereunder.

In an order issued on January 17, the Securities and Exchange Board of India (SEBI)'s Whole-time Member Amarjeet Singh, "I note that the Noticee, while denying most of the allegations, has submitted that even if few allegations still remain, those are of technical and venial in nature and have not caused any prejudice to the clients or markets at large."

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"It is also submitted that the procedural lapses ought to be seen in the context of the overall scale of operations handled by the Noticee (IIFL Securities) and the various compliance measures adopted by it. Be that as it may, the fact of the violations being technical and venial in nature, does not absolve the Noticee from its liabilities. However, at the same time, it is noted that for the same set of allegations, adjudication proceedings were also initiated by SEBI which were concluded with passing of Adjudication Order dated August 21, 2024 whereby, the Adjudicating Officer imposed a penalty of ₹ 11,00,000 upon the Noticee, which has been paid by it."

(This copy will be updated.)