News

February 29, 2020

SEBI Imposes Rs 17 Lakh Fine On Motilal Oswal


[ By Bobby Anthony ]

SEBI

The Securities & Exchange Board Of India (SEBI) has slapped a fine of Rs 17 lakh on Motilal Oswal Financial Services Ltd for failing to comply with its circular which had asked stock brokers to segregate the funds and securities of their clients.

The SEBI order has come after an inspection conducted by the market regulator which found that there were instances where the brokerage had misused its clients’ funds.

It was found to have utilized the credit balance lying in its clients’ bank account towards meeting its own or other clients’ obligations.

Clients’ funds were found to have been misused on 11 sample days out of the 20 sample days representing approximately 55% of sample dates selected by SEBI’s inspection team.

Around Rs 5.01 crore to Rs 102.06 crore worth of clients’ funds were found to be misused by the brokerage, which is a violation of provisions of the SEBI circular dated November 18, 1993, according to which brokerages ought to shall keep clients’ funds in separate accounts other than their own.

Also, no payment for transactions in which the member brokerage takes a position as a principal would be allowed to be made from the client’s account, as per the SEBI circular which was found to be violated by Motilal Oswal.



Related Post

latest News

  • RERA plans to approach RBI for loan restructuring for real estate sector

    The Covid-19 pandemic has impacted almost all industry sectors including real estate. According to the two leading industry bodies – Confederation o...

    Read More
  • SC directes JP Morgan’s attached money to be used for Amrapali projects

    The Supreme Court on June 18, 2020 said that the funds of JP Morgan, attached by the Enforcement Directorate (ED) in the Amrapali housing scam, might ...

    Read More
  • Users consent must actively consent to online tracking cookies: European Court of Justice

    The European Court of Justice (ECJ) has ruled that internet users need to give active consent and not mere opt-out of an automatic default that would ...

    Read More