Sebi slaps Rs 17 lakh fine on Motilal Oswal for misuse of clients’ funds
PTI, Feb 29, 2020, 12:33 PM IST
New Delhi: Sebi on Friday slapped a fine of Rs 17 lakh on Motilal Oswal Financial Services Ltd for “misuse of client funds” as it failed to comply with regulations on segregating funds and securities of clients.
Sebi had conducted an inspection between April 2012 to March 2014, wherein it found instances where the broker had indulged in intermingling or misuse of clients’ funds.
“Instances of misutilisation of funds of the clients on 11 sample days out of the 20 sample days represent approximately 55 per cent of the sample dates selected by the inspection team,” it said in an order.
In a statement, Motilal Oswal said it was in the process of examining the order and would take appropriate action.
According to Sebi, the amount of misutilisation was in the range of Rs 5.01 crore to Rs 102.06 crore for the sample dates.
“The noticee (Motilal Oswal) has failed to maintain segregation of client’s funds, and further misused the clients’ funds, thereby violating the provisions of the Sebi circular… dated November 18, 1993,” the order said.
As per the 1993 circular, stockbrokers shall keep the money of the clients and their own money in separate accounts. Besides, no payment for transactions in which the member broker is taking a position as a principal will be allowed to be made from the client’s account.
“We state that Sebi’s order dated February 28, 2020, pertains to the inspection of books/records of Motilal Oswal Financial Services Ltd, for the old period from April 1, 2012, to March 31, 2014.
“We are in the process of examining the order and would take appropriate action,” Motilal Oswal said in the statement.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag
Equity investors become poorer by Rs 7.37 lakh crore during morning trade as markets tumble
Maruti Suzuki looks to cash in on ‘few lakh marriages’ in Nov to carry festive sales momentum
Mcap of 6 of top-10 most valued firms jump Rs 1 lakh cr; State Bank, ICICI Bank top gainers
MUST WATCH
Latest Additions
Balasore tragedy result of composite negligence of railway officials: Orissa High Court
Actress Kasthuri stokes controversy by her remarks on Telugu-speaking people in TN
Three convicted for 2016 Kollam collectorate blast case
Expect Canadian government to ensure justice, uphold rule of law: PM Modi
Group clash in Indore after argument over bursting firecrackers: NSA slapped against 2 accused
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.