BENGALURU (Reuters) – Shares of India’s IIFL Securities fell as much as 19.2% on Tuesday, a day after the country’s markets regulator barred its stockbroking unit from taking on any new clients for two years, alleging misuse of client funds in 2013-14.
The Securities and Exchange Board of India (SEBI) on Monday said IIFL Securities was involved in the mixing of clients’ funds with its own funds, utilizing credit balances in one client’s accounts for the needs of another.
The alleged violations took place between April 2011 and January 2017, SEBI found, while inspecting the company’s operations and accounts.
The Mumbai-based company in a statement said that SEBI applied its rules retrospectively and it is in the process of appealing against the order before the Securities Appellate Tribunal.
In its order, SEBI noted that the company has taken corrective actions since the alleged violations came to light but added that some regulatory action is necessary due to the “gravity of the violations committed.”
IIFL Securities shares saw their biggest intraday percentage loss since December 2021, trading down 15.9% as of 9:27 a.m. IST.
(Reporting by Biplob Kumar Das in Bengaluru; Editing by Nivedita Bhattacharjee)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.