SEBI fines Motilal Oswal Financial Services Rs 5 lakh for violating Stock Broker Regulations

The violations included the broker's authorised person (AP) terminal details being mapped with another stock broker

The market regulator has fined Motilal Oswal Financial Services (MOFSL) Rs 5 lakh for violating various provisions under the Stock Brokers Regulations and the regulator's directives.

In an order issued on December 31, the Securities and Exchange Board of India's (SEBI's) Adjudicating Officer Amar Navlani wrote, "In the instant case, I note that the material available on record does not quantify any disproportionate gain or unfair advantage or the amount of loss caused to an investor or group of investors as a result of the violations committed by the Noticee".

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"Further, as regards repetitive nature of default, I note from SEBI website that Adjudication Orders dated April 29, 2022 and February 28, 2020 were passed in respect of Noticee imposing monetary penalty. Further in this regard, I also note from material available on record that in the instant matter SEBI has inter alia observed repetitive nature in respect of violation relating to mismatch of email ids. In this regard, I note that Noticee being a SEBI registered intermediary had failed to comply with the extant applicable provisions of the Stock Brokers Regulation and SEBI Circulars, importance of which cannot be undermined, as brought out and dealt with in the foregoing and which SEBI is duty bound to enforce compliance of. Such non-compliance accordingly needs to be dealt with suitable penalty."

The violations included the broker's authorised person (AP) terminal details being mapped with another stock broker, the broker's AP's email ID and mobile number being uploaded as that of client's and uploading the contact details of clients (email ID and mobile number) wrongly onto the exchange.