SEBI imposes ban on IIFL Securities, causing shares to tumble 19.24% in a single day

2023-06-20 15:17:50

Shares of India’s leading online investment trading platform IIFL Securities tumbled around 19.24 percent in Tuesday’s trade alone. The main reason for this is the ban notice imposed by the Securities and Exchange Board of India, SEBI.

Market regulator SEBI has imposed a ban on new customers for two years after conducting several detailed inspections over different periods from April 2011 to January 2017. Shares of IIFL Securities fell as low as Rs 57.5 following the ban announcement.

SEBI conducted six detailed inspections of IIFL’s books of accounts simultaneously from August 7 to September 19, 2014 at four different offices of the company.

In the results of this investigation, SEBI found that IIFL failed to manage its own funds separately from customers’ funds, misused credit balances in customers’ funds for the benefit of customers with debit balances and misappropriation of customers’ bank accounts.

Following this, SEBI has banned IIFL Securities from accepting new clients for two years. And in response to SEBI’s order, IIFL Securities is said to be preparing to file an appeal against the 2-year restraining order in the Securities Appellate Tribunal.

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Similarly, in another case, Shilpi Cable Technologies, SEBI on Monday banned six companies from the stock market for one year and imposed a total fine of Rs 70 lakh for violating insider trading norms.

Banned list of 6 companies or entities Dinesh Gupta, Dinesh Gupta HUF, Rajesh Gupta, Rajesh Gupta HUF, Nirmala Gupta, Ajay Pincap Consultants have been banned for one year.