SEBI imposes ₹7 lakh penalty on Motilal Oswal for stock broking violations

Markets regulator Securities and Exchange Board of India (SEBI) has imposed a ₹7 lakh penalty on Motilal Oswal Financial Services (MOFSL) after an inspection for violations during the period from April 1, 2021, to June 30, 2022.

SEBI’s inspection revealed lapses in reporting and short-collection of margin. The regulator found 57 instances where MOFSL failed to correctly upload weekly data of cash and cash equivalent balances.

Following a review of the case, SEBI imposed the penalty under Section 15-I of the SEBI Act, 1992, and Rule 5 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules.

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₹1 lakh penalty has been imposed for failing to maintain books/records, ₹1 lakh penalty for failing to address investor grievances and 5 lakh for general non-compliance.

Motilal Oswal has to pay the fine within 45 days.

Material available does not quantify any disproportionate gain and unfair advantage, said SEBI in its order.