Sebi imposes penalty of Rs.2.5 million on Motilal Oswal Financial Services

Sebi imposes penalty of Rs.2.5 million on Motilal Oswal Financial Services Motilal Oswal Financial Services Ltd has been fined Rs.2.5 million by capital markets regulator Sebi for misusing client funds and reporting the margin incorrectly. According to a Sebi ruling issued on Friday, it has also been charged for funding clients over the required time period, failing to preserve proper evidences of client order placement, and anomalies in the CKYC (Central Know Your Customer) process, among other things. The order came after the Securities and Exchange Board of India (Sebi) conducted a thorough investigation into Motilal Oswal Financial Services' stock broking and depository participation activities from August to September 2019. The inspection covered the period from April 2018 to August 2019. Sebi determined that Motilal Oswal Financial Services improperly reported margin to the exchange in the F&O segment whether there was a deficiency in the case of three clients in its order. Furthermore, it has exposed a few consumers beyond T+2+5 days. In addition, the stock broker failed to upload client CKYC information to the CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) webpage. While it has corrected the deficiencies discovered after the examination, there was noncompliance throughout the inspection period, which Motilal Oswal Financial Services has not refuted. "As a Sebi-registered intermediary, noticee was required by law to follow the provisions of the SCRA and Sebi Act, which it did not do. Such disregard for the legal restrictions governing the operation of such intermediaries necessitates a suitable penalty that should serve as a deterrent "Sebi stated. Motilal Oswal Financial Services violated regulatory requirements through such actions, and as a result, Sebi fined it.