Capital Markets Supervisor Sebi on Friday imposed a fine of Rs 1 crore on India Infoline Ltd (IIFL) for misuse of customer values.
The amount must be paid by IIFL within 45 days.
The order came after Sebi conducted multiple inspections of IIFL’s accounts, now known as IIFL Securities, for the period April 2011 to January 2017.
Based on the findings, the market watchdog began a judicial proceeding.
“It was found that the Note (IIFL) had misused client funds in the range of Rs 0.59 crores to Rs 397.02 crores for settlement obligation of debit balance clients and in the range of Rs 0.26 crores to Rs. 73.28 crores for proprietary goals, in addition to the settlement obligation of clients for debit balance, “said Sebi.
In addition, the interest on funds misused by the note amounted to Rs 34.87 crore, he added.
Furthermore, the notice did not regulate clients’ funds during the inspection period as instructed by Sebi.
As a result, the market watchdog fined the firm a total of Rs 1 crore of Rs and found that certain infringements by IIFL were repetitive in nature.
Meanwhile, in a separate order, the supervisor imposed a fine of Rs 20 lakh on three entities for transferring manipulative acts in the shares of Le Waterina Resorts and Hotels Ltd (LWRHL).
The amount must be paid jointly and severally by the entities, it added.
These entities “have committed acts that were fraudulent and intended to manipulate the LWRHL script price, and have therefore … violated PFUTP (Prohibition of Fraudulent and Unfair Trading Practices) regulations.”
This comes after Sebi conducted investigation into the case of Le Waterina Resorts and Hotels Ltd for the period October 2010 to March 2012, examining the trading activity in the company’s script.
By a separate order, the market regulator imposed a fine of Rs 5 lakh on Rajendra Kumar Chokhany HUF for performing non-genuine trades in illiquid stock options on BSE.
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