IIFL Securities shares hit record high as SAT sets aside SEBI order; check details

Shares of IIFL Securities Ltd hit their record high in early deals today after the Securities Appellate Tribunal (SAT) set aside a Securities Exchange Board of India (SEBI)’s order. The stock zoomed 14% to Rs 134.40 against the previous close of Rs 118 on BSE. Market cap of the firm rose to Rs 3,947.19 crore. The firm saw 4.72 lakh shares changing hands amounting to a turnover of Rs 6.12 crore on BSE.     

IIFL Securities stock has risen 94.75% in six months and gained 98.69% this year.  The stock has a beta of 0.3, indicating very low volatility in a year.   

In terms of technicals, the relative strength index (RSI) of IIFL Securities stands at 61.1, signaling it's trading neither in the overbought nor in the oversold zone. IIFL Securities shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.        

The company said the Securities Appellate Tribunal (SAT) has set aside SEBI’s order dated June 19, 2023 prohibiting IIFL Securities from onboarding new clients for two years in respect of its business as a stock broker. 

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In the latest order, SAT has said there has been no misuse of client funds and "since there is no failure on the part of the appellant to segregate monies of the client nor monies of the client have been misused by the appellant for its own purposes, no penalty could be imposed." However, it added that IIFL Securities failed to change the nomenclature of the bank accounts of the client as required to be done under the 1993 circular. 

"Considering the aforesaid that it is only a technical breach, we are of the opinion that in the given circumstances for the two show cause notices, a penalty of Rs 20 lakh in total would be sufficient for the purpose of this case," it concluded. 

IIFL Securities in a release said the issue pertaining to nomenclature of the client accounts has been rectified and "the company is compliant with the applicable regulations/circulars". 

 

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