Earlier the market regulator had alleged that IIFL Securities failed to segregate client funds, and mixed its own funds with client funds, and misused credit balances in clients’ funds for the benefit of clients having a debit balance. Sebi had alleged that IIFL Securities used pool accounts.
Meanwhile, in the latest order, SAT has said there has been no misuse of client funds and «since there is no failure on the part of the appellant to segregate monies of the client nor monies of the client have been misused by the appellant for its own purposes, no penalty could be imposed.» However, it added that IIFL Securities failed to change the nomenclature of the bank accounts of the client as required to be done under the 1993 circular.
«Considering the aforesaid that it is only a technical breach, we are of the opinion that in the given circumstances for the two show cause notices, a penalty of Rs 20 lakh in total would be sufficient for the purpose of this case,» it said.
The company further clarifies that the issue about the nomenclature of the client accounts has been rectified and the company is compliant with the applicable Regulations/Circulars.
At 11.46 am, the scrip was trading 6.6% higher at Rs 125.8 on BSE.
On a year-to-date basis, the stock has also surged over 90%.
Technically, the stock's day RSI (14) is at 61.1. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
MACD is at 4.4, above its Center Line, but below the signal line. Shares of IIFL Securities are also trading higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.
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