SEBI Penalizes Motilal Oswal Financial Services

In a significant move, the Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 7 lakh on Motilal Oswal Financial Services Ltd for violating stock broker and depository participant rules. The firm has been directed to pay the penalty within 45 days.

Inspection Reveals Multiple Violations

An inspection conducted by SEBI, in collaboration with stock exchanges and depositories from April 2021 to June 2022, uncovered several violations. These included failure to resolve 26 complaints within 30 days, incorrect reporting of Margin Trading Funding (MTF) collaterals, and short collection of margin in various market segments.

Client Funds Misallocated

SEBI also found that funds belonging to 39 active clients were incorrectly set aside, with the broker citing non-availability of client's bank account and non-traceability of client as reasons. This misallocation amounted to Rs 3.50 crore.

SEBI Adjudicating Officer Amar Navlani emphasized the importance of compliance with securities laws, stating that the violations by Motilal Oswal Financial Services necessitate a suitable penalty.