India market regulator bans IIFL Securities from signing new broking clients for 2 years

BENGALURU, June 19 (Reuters) - Indias market regulator on Monday banned the stockbroking unit of IIFL Securities (IIFS.NS) from onboarding any new client for two years, citing alleged misuse of client funds that came to light in 2013-2014.

The Securities and Exchange Board of India (SEBI) inspected the operations and accounts of IIFL Securities between April 2011 and January 2017 and found several alleged violations of its rules, including mixing clients funds with its own funds and utilizing credit balances in one clients account for the needs of other.

In its order, SEBI noted that the company has taken corrective actions since then but added that some regulatory action is necessary \“in the light of gravity of violations committed...\”

The company will appeal SEBIs order, said an official who declined to be named as the person is not authorised to speak to the media.