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

Drugs worth Rs 6 crore seized in Bengaluru, five arrested

Siddaramaiah urges Nirmala Sitharaman to address NABARD’s loan cuts to farmers

Karnataka HC denies anticipatory bail to Prajwal Revanna in sexual harassment case

Delhi court stays defamation case against CM Atishi

Awards don’t create value for independent films in India: Manoj Bajpayee

Public Alert: Cyber fraudsters impersonating traffic police to demand fines

UP: 25 people booked for attacking civic officials for encroachment removal

Related Articles More

Sony India bags ACC media rights for eight years

Musk says X now top news app on App Store in India

Air India to offer integrated aircraft maintenance engineering programme

Markets stage sharp recovery; Sensex reclaims 79k level, Nifty surges 557.35 points

Baku climate talks: The ‘X’ factor that could determine future of Global South

MUST WATCH

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation

Geethotsava

Naxal Operation


Latest Additions

Air pollution: SC flags Delhi govt’s failure to implement GRAP-4 curbs on entry of trucks

Drugs worth Rs 6 crore seized in Bengaluru, five arrested

Siddaramaiah urges Nirmala Sitharaman to address NABARD’s loan cuts to farmers

Satwik-Chirag enter semifinals, Lakshya loses to Antonsen in China Masters

BJP stages protest against Congress govt in Karnataka over Waqf properties row

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.