IIFL Securities Shares Hit Record As SAT Sets Aside SEBI Bar On Onboarding Clients
The stock rose as much as 13.99% during the day to Rs 134.40 apiece on the NSE.
Shares of IIFL Securities Ltd. jumped nearly 14% to a record high on Friday after the Securities Appellate Tribunal set aside SEBI's order prohibiting the company from onboarding new clients for two years.
The SAT has also reduced the penalty imposed on IIFL Securities to Rs 20 lakh from Rs 1 crore, according to an order on Thursday.
There has been no misuse of client funds and by wrongly considering the non-funded portion of the bank guarantee, as per the 2016 circular, an attempt has been made to show that there was a misuse of client funds, which is patently erroneous, according to the tribunal.
IIFL Securities' stock rose as much as 13.99% during the day to Rs 134.40 apiece on the NSE. It pared gains to trade 9.20% higher at Rs 128.75 apiece compared to a 0.4% decline in the benchmark Nifty 50 as of 10:10 a.m.
The shares have risen 101.4% on a year-to-date basis. The total traded volume so far in the day stood at 17 times its 30-day average. The relative strength index was at 73.72, indicating that the stock may be overbought.
One analyst tracking IIFL Securities has a 'hold' rating for the stock, according to Bloomberg data.
