The Securities Appellate Tribunal (SAT) has set aside SEBI’s order prohibiting IIFL Securities from on-boarding new clients for a period of two years in respect of its business as a stock broker, and reduced the monetary penalty to ₹20 lakh in the adjudication orders dated May 20, 2022 and May 30, 2022.
The SAT order of December 7, 2023, said there is no reason to initiate two separate proceedings for same cause of action by bifurcating the period. Accordingly, all the three appeals are partly allowed. The findings given by the WTM, SEBI and the Adjudicating Officer (AO) on the issue of nomenclature of the client accounts being violative of the 1993 circular is affirmed. All other findings are set aside. Consequently, the direction of the WTM, SEBI restraining the company from taking new clients for a period of two years is set aside.
Appeals at SAT against SEBI up 53% in FY23
R. Venkataraman, Chairman and Managing Director, IIFL Securities said, “We are pleased that SAT has set aside the SEBI order prohibiting the company from on-boarding new clients. We reiterate our commitment to serve all our clients with the highest degree of corporate governance.”
The IIFL Securities stock jumped 9.54 per cent on the NSE, and traded at ₹129.15 at 10:13 am on Friday.