Market Regulator Sebi made Motilal Oswal Financial Services (Motilal Oswal Financial Services) It has been fined Rs 7 lakh. This action has been taken due to alleged flaws, wrong revelations and violations of other rules in the recovery of client margin. According to the report, Motilal Oswal Financial Services did not follow the rules fixed for stock brokers, due to which the fine has been imposed.
SEBI said in an order issued on Thursday that it investigated the broking firm during the period from 1 April 2021 to 30 June 2022. Subsequently, a show cause notice was issued to the brooking firm on 4 July 2024.
These are allegations on Motilal Oswal Financial Services
In SEBI notice, the main allegations made against Motilal Oswal Financial Services, wrong reporting and margins, cash and cash equivalent balance wrong data (in 57 cases), being involved in other works other than securities business Financial liability originated) and incorrect reporting on margin trading funding.
SEBI notice alleged that more than 300 (334) complaints received from Scores platforms and exchanges were pending for more than 30 days. In addition, the market intermediate did not maintain the accounts properly.
What did Motilal Oswal Financial Services say in response?
Motilal Oswal Financial Services said in response to the show cause notice of SEBI that some accused violations “completely unknowingly” and “deliberately wrong reporting” were not “. It further states that there were some “technical issues”, which led to violations, and have already been fixed.
For example, according to the order, SEBI found during the investigation that the details of the transaction were not recorded properly in the bank book. In addition, the heads of the bank book were wrong – the information information was recorded in the receipt column and the information about the receipt in the payment column.
In his reply, Motilal Oswal Financial Services said, “Details of fund transfer during the inspection period were manually recorded, which may have difficulty in identifying some ambiguities or some transactions.”
The company said that in this case, MOFSL has taken steps to improve by implementing “Makecker/Checker Mechanism” to ensure the correct details. Meanwhile, SEBI’s order also states that it has no material to prove that the market intermediate has made an illegal benefit.