The Securities Appellate Tribunal (SAT) has temporarily stayed the order by the Securities and Exchange Board of India (SEBI) against IIFL Securities. The brokerage was barred from onboarding new clients for two years by SEBI.
This interim relief has resulted in a surge of over 6% in the stock of IIFL Securities. The shares rose to a day’s high of Rs 65.90 after the stay order was delivered.
SEBI passed the order against IIFL Securities, accusing them of indulging in unfair practices in the securities market.
This verdict by the SAT gives some relief to IIFL Securities, who can continue onboarding new clients till there is any further notice issued, without the fear of any legal action.
This comes as a small victory for IIFL, which has been accused of lapses in the past. The brokerage has refuted all claims against them and has labeled the allegations as baseless.
This stay order is beneficial for the brokerage, which has been operating in the Indian market for over two decades now. The firm has said that it is taking appropriate measures to address the allegations.
IIFL Securities is a reputed brokerage firm in India, known for providing reliable and trustworthy advice to its clients. The company handles a wide range of financial products and services, catering to the needs of investors across the country.
This verdict will pave the way for further legal proceedings, and it remains to be seen what action SEBI will take after the stay order is lifted. For now, the stakeholders of IIFL Securities can breathe a sigh of relief till the issue is resolved.
The stay order by SAT will provide much-needed relief to IIFL Securities, and it remains to be seen how this case will pan out in the future.
