The Securities and Exchange Board of India (Sebi) on Monday imposed a penalty of Rs 3 lakh on Motilal Oswal Financial Services Ltd for violating stock brokers’ norms. This fine must be settled within 45 days of the order, Sebi stated.
Sebi’s probe involved a thematic inspection of Motilal Oswal’s operations between April 2022 and January 2024, examining control over Authorized Persons.
During the inspection, it was found that 13 trading terminals were missing from their reported locations. Trades were executed from only a few of these terminals, raising concerns about unauthorized operations.
Further findings revealed that some terminals were managed by unapproved users. A monetary penalty was deemed necessary due to improper extension of terminal use, along with unreported fund-based activities with clients. The breach resulted in a Rs 3 lakh penalty being imposed on the financial services firm.
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