Markets regulator SEBI has issued a warning to IIFL Capital Services regarding due diligence in debt issues handled by the company’s merchant banking division.In a disclosure to stock exchanges, IIFL Capital said the Securities and Exchange Board of India (SEBI) has issued an administrative warning letter dated March 7, 2025.
The regulator conducted an inspection with regard to debt issues handled by the merchant banking division of the company for the period April 1, 2022 to April 30, 2024.
It flagged concerns relating to disclosure of individual break-up of issue related expenses and timelines for payment of fees to each intermediary in the offer documents.After the submission of the company’s response to the findings of the SEBI inspection, an administrative warning letter was issued on observation pertaining to due diligence carried out by the company under the ICDR (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
The regulator conducted an inspection with regard to debt issues handled by the merchant banking division of the company for the period April 1, 2022 to April 30, 2024.
It flagged concerns relating to disclosure of individual break-up of issue related expenses and timelines for payment of fees to each intermediary in the offer documents.After the submission of the company’s response to the findings of the SEBI inspection, an administrative warning letter was issued on observation pertaining to due diligence carried out by the company under the ICDR (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
IIFL Capital said there is no monetary impact on the company due to SEBI’s action.
Shares of IIFL Capital ended flat on Tuesday at ₹204, down by 0.41% on BSE.
