SEBI Bars IIFL Securities From Taking New Clients For Two Years

Market regulator SEBI has found that IIFL Securities misused and mixed client funds and has hence barred the brokerage from taking on new clients for two years.

In doing so, during the period of April 1, 2011 to Jan. 31, 2017, it violated the regulator's circular and regulations for stock brokers.

However, since 2017, IIFL Securities has demonstrated its attempts to atone itself by correcting its wrongdoings and has shown that the violations have not continued as of now, as the order has noted. No misuse of clients' funds or mixing of clients' funds with their own funds has been observed since March 2017. And so, the regulator has refrained from cancelling IIFL Securities' broker certificate, saying such an action would be too disproportionate a punishment.