Business Today

Motilal Oswal, IIFL Holdings fall up to 9% on Sebi order in NSEL scam

While Motilal Oswal Financial Services share price tanked 5.06% to 581 level compare to its previous close of 612.30,  IIFL Holdings stock fell up to 9.04 % to 332 level against its Friday close of 365 on the BSE.

twitter-logo BusinessToday.In        Last Updated: February 25, 2019  | 13:25 IST
Motilal Oswal, IIFL Holdings fall up to 9% on Sebi order in NSEL scam
Motilal Oswal Financial Services share price opened at 585 level and hit an intra day high of 608 on BSE. IIFL Holdings stock also hit an intra day high of 372.70 compared to the opening price of 354.05 in trade today.

Motilal Oswal Financial Services and IIFL Holdings share prices tanked in trade today after market regulator Sebi ruled that they were not "fit and proper" to act as commodity derivative brokers in connection with the Rs 5,600-crore scam at the now defunct NSEL.

While Motilal Oswal Financial Services share price tanked 5.06% to 581 level compare to its previous close of 612.30,  IIFL Holdings stock fell up to 9.04 % to 332 level against its Friday close of 365 on the BSE. Motilal Oswal Financial Services share price opened at 585 level and hit an intra day high of 608 on BSE.

NSEL Scam: SEBI declares Motilal Oswal, IIFL 'not fit and proper' as commodity derivative brokers

IIFL Holdings stock also hit an intra day high of 372.70 compared to the opening price of 354.05 in trade today. IIFL Holdings stock logged a turnover of Rs 99.37 lakh with 28,000 shares changing hands on the BSE. Motilal Oswal Financial Services recorded a turnover of Rs 1.27 crore with 21,000 shares changing hands on the BSE.

In a regulatory filing last week, Motilal Oswal Financial Services said Motilal Oswal Commodities Brokers is aggrieved by the order and consulting lawyers to explore legal options before it. Noting that reputation is an important factor for consideration of "fit and proper" criteria, Sebi said the reputation of the two entities has been seriously eroded.

Reliance Retail may launch IPO by June as Mukesh Ambani bets big on consumer businesses: report

The rulings have come against the backdrop of the payment scam at the National Spot Exchange (NSEL) that came to light in 2013; and subsequently, many entities, including brokers, have come under the scanner of Sebi and other probe agencies. Motilal Oswal Commodities and India Infoline Commodities are not "fit and proper" entities to be granted registration to operate as commodity derivatives brokers, according to two separate orders passed by Sebi on February 22.

The regulator has rejected the applications dated December 11 and December 16, 2015, filed by Motilal Oswal for registration as commodity derivatives broker. In the case of India Infoline Commodities, its application dated December 23, 2015 has been rejected.

Both entities would cease to "act, directly or indirectly, as commodity derivatives brokers", as per the orders.

According to Sebi, the allegations against the Motilal Oswal and India Infoline that they are not fit and proper rests on twin basis.

One is the alleged violation of various laws and circulars with respect to the NSEL matter, and the second is the existence of various adverse observations by various courts/ authorities regarding the transactions in paired contracts on NSEL and the association of the two entities with such transactions and with the spot exchange, it noted.

"Both sets of allegation lead to serious questions about the reputation, integrity, character and competence" of the two entities, Sebi said in the orders.

JBM Auto share price rises over 8% on buying majority shareholding in German firm

Edited by Aseem Thapliyal

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close