Sebi slaps 1 cr fine on India Infoline Ltd for misusing client securities

Sebi slaps 1 cr fine on India Infoline Ltd for misusing client securities PTI Capital markets regulator Sebi on Friday imposed a fine of 1 crore on India Infoline Ltd IIFL for misusing client securities.

The amount has to be paid by IIFL within 45 days.

The order came after Sebi conducted multiple audits of the books of accounts of IIFL, now known as IIFL Securities, for the period April 2011 to January 2017.

The market watchdog initiated adjudication proceedings based on the findings.

It was found that the noticee IIFL had misused client funds in the range of Rs 0.59 crores to Rs 397.02 crores for settlement obligations of debit balance clients and in the range of Rs 0.26 crores to Rs. In addition to the settlement obligations of debit balance clients, Sebi said that there were 73.28 crores for proprietary purposes.

The interest on funds misused by the noticee was a total of Rs 34.87 crore, it added.

The noticee has not settled the funds of clients during the inspection period, as mandated by Sebi.

The market watchdog slapped a total fine of 1 crore on the firm and noted that certain violations of IIFL were repetitive in nature.

The regulators imposed a fine of Rs 20 lakh on three entities for indulging in manipulative trades in the shares of Le Waterina Resorts and Hotels Ltd LWRHL. The amount is to be paid jointly and severally by the entities.

These entities 'have executed trades that were fraudulent and intended to manipulate the scrip price of LWRHL, and have therefore violated the PFUTP Prohibition of Fraudulent and Unfair Trade Practices Regulations. This comes after Sebi conducted an investigation into Le Waterina Resorts and Hotels Ltd's case for the period October 2010 to March 2012, examining the trading activity in the company's scrip.

The market regulators imposed a penalty of 5 lakh on Rajendra Kumar Chokhany HUF for carrying out non-genuine trades in illiquid stock options on the BSE, through a separate order.