-
ALSO READ
RBI imposes penalty on 3 co-operative banks for deficiencies in compliance
Sebi imposes Rs 72 crore penalty on Winsome Textile Industries, directors
Sebi imposes Rs 2.5 million penalty on Motilal Oswal Financial Services
RBI imposes Rs 2.97 million penalty on Unimoni Financial Services
Sonia accuses BJP of misusing probe agencies to target Opposition
-
Capital markets regulator Sebi on Friday imposed a penalty of Rs 1 crore on India Infoline Ltd (IIFL) for misutilisation of client securities.
The amount has to be paid by IIFL within 45 days.
The order came after Sebi conducted multiple inspections of the books of accounts of IIFL, now known as IIFL Securities, for the period April 2011 to January 2017.
Based on the findings, the market watchdog initiated adjudication proceedings.
"It was found that the noticee (IIFL) had misused client funds in the range of Rs 0.59 crores to Rs 397.02 crores for settlement obligation of debit balance clients and in the range of Rs 0.26 crores to Rs. 73.28 crores for proprietary purposes, in addition to settlement obligation of debit balance clients," Sebi said.
In addition, the interest on funds misused by the noticee amounted to Rs 34.87 crore, it added.
Further, the noticee has not settled the funds of clients during the inspection period as mandated by Sebi.
Consequently, the market watchdog slapped total fine of Rs 1 crore on the firm and noted that certain violations by IIFL were repetitive in nature.
Meanwhile, in a separate order, the regulator levied a fine of Rs 20 lakh on three entities for indulging in manipulative trades in the shares of Le Waterina Resorts and Hotels Ltd (LWRHL).
The amount is to be paid jointly and severally by the entities, it added.
These entities "have executed trades which were fraudulent and intended to manipulate the scrip price of LWRHL, and have therefore, violated ...PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations."
This comes after Sebi conducted investigation in the matter of Le Waterina Resorts and Hotels Ltd for the period October 2010 to March 2012, examining the trading activity in the company's scrip.
Through a separate order, the market regulator imposed a penalty of Rs 5 lakh on Rajendra Kumar Chokhany HUF for carrying out non-genuine trades in illiquid stock options on BSE.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU