In a recent development Securities and Exchange Board of India (SEBI) has barred IIFL securities from onboarding any new clients for 2 years in respect of its business as stock brokers.
This action would result in IIFL Securities prohibition from stock broking operations.
In the statement supporting the action market regulator said, IIFL was mixing clints’ funds with its own before using those mixed funds for its own proprietary usage. Funds of its credit balance clients’ were used to not only fund trades of its debit balance clients but also to fund its own trades.
SEBI also said IIFL Securities has demonstrated its attempts to atone itself by correcting its past wrongdoings so cancellation of the certificate would be too big or small of a punishment.
IIFL securities in their Defence has stated that there has been “No misuse of clints’ funds, mixing of clints’ funds with own funds since March 2017.
