SEBI bans IIFL Securities from onboarding new clients for 2 yrs

SEBI lAW Insider

LI Network

Published on: 20 June 2023 at 11:18 IST

IIFL Securities has been prohibited by the Securities and Exchange Board of India (SEBI) from accepting new clients for a duration of two years due to their violation of the code of conduct regulations for stock brokers.

SEBI, in its decision, stated that it has resolved two separate investigations initiated against the brokerage firm, which were prompted by six inspections conducted into the operations of IIFL Securities.

The regulatory action was taken because the company commingled clients’ funds with its own funds, utilized credit-balance client accounts to settle debts of debit-balance client accounts, and employed credit-balance client accounts to fulfill obligations related to proprietary trading.

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