IIFL Securities share price tanked 18.4% to Rs 58 today after SEBI banned the stockbroking unit of the brokerage from onboarding any new client for two years, citing alleged misuse of client funds. The Securities and Exchange Board of India inspected the operations and accounts of IIFL Securities between April 2011 and January 2017 and found several alleged violations of its rules, including mixing clients’ funds with its own funds and utilising credit balances in one client’s account for the needs of others.
“The said Order pertains to inspections carried out for different periods from April 2011 to January 2017, which was prior to the issuance of the Enhanced Supervision Circular dated September 26, 2016, by SEBI, which was made effective from July 1, 2017. The SEBI Order applies the said Circular retrospectively even while confirming that after the Circular becoming effective there has been no non-compliance with the same. The said Order records “I find no instance of misuse of clients funds by the Noticee placed before me which has occurred subsequent to the implementation of the Enhanced Supervision Circular dated September 26, 2016,” said IIFL Securities.
IIFL Securities shares have risen 8% in the last one month and have fallen over 8% in the last six months. The stock touched a 52-week high of Rs 79.65 on 15 September 2022 and a 52-week low of Rs 48.23 on 23 March 2023. At the current price of Rs 62.93 per share, the company’s market capitalization stands at Rs 1,923 crore. Today 2,55,619 shares were traded on BSE.