SEBI Fines Motilal Oswal ₹300,000 For Violations Linked To Authorised Persons

The Securities and Exchange Board of India on Monday imposed a penalty of ₹300,000 on Motilal Oswal Financial Services Ltd. for breaching stock broker regulations and regulatory circulars.

The fine follows a thematic inspection by SEBI in March 2024 focused on the brokerage's control over its authorised persons, who act as intermediaries to manage clients. SEBI found multiple violations, including unauthorised financial dealings with clients by certain authorised persons.

In one case, an authorised person entered into loan agreements and unlisted share transactions with clients, while another was found to have ₹183 million received and ₹12 million paid in fund-based dealings with 36 registered clients.

Though SEBI flagged these as serious breaches, the penalty was kept moderate as the brokerage took corrective actions post-inspection and no client complaints were reported.