IIFL Capital Services Limited has informed the exchanges that the Securities Appellate Tribunal (SAT) has reduced the monetary penalty imposed on its wholly owned subsidiary, IIFL Commodities Limited, in a long-running case related to incorrect margin reporting.
According to the company’s exchange filing, SAT has modified the penalties earlier imposed by the Member and Core Settlement Guarantee Fund Committee (MCSGFC) of the Multi Commodity Exchange (MCX). The revised order reduces the penalty to Rs 40 lakh per year for FY15, FY16 and FY17, totalling Rs 1.20 crore, while keeping the rest of the MCSGFC directions unchanged.
Background of the case
MCX had conducted an inspection of IIFL Commodities’ books and records for FY 2014–15 to 2016–17 and subsequently levied penalties of Rs 3.29 crore, Rs 1.19 crore, and Rs 62.35 lakh for incorrect or false reporting of margin amounts. The subsidiary contested these orders before SAT, which has now partly allowed the appeals and significantly reduced the penalty.
Company response
The order, dated November 28, 2025, was received by IIFL on December 3. The company has stated that apart from the reduced penalty, there is no significant impact on its financial or operational activities. It added that it will consult its legal advisors to determine the further course of action.
