IIFL Capital Receives Warning from SEBI over Due Diligence in Debt Securities
Moneylife Digital Team 11 March 2025
Market regulator Securities and Exchange Board of India (SEBI) has issued a regulatory warning to IIFL Capital Services Ltd (IIFL Capital) over lapses in due diligence related to debt securities. The warning, received by IIFL Capital on 10 March 2025, follows an inspection of the company’s merchant banking division’s debt issues between 1 April 2022 and 30 April 2024.
 
In a regulatory filing, the brokerage firm disclosed the development, stating that SEBI had raised concerns regarding the disclosure of issue-related expenses and the timelines for payment of fees to intermediaries in offer documents. 
 
The inspection aimed to assess compliance with the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. Following the company’s response to the inspection findings, SEBI issued the administrative warning letter, relating to disclosure of individual break up of issue-related expenses and timelines for payment of fees to each intermediary in the offer documents, IIFL Capital says.
 
Despite the warning, IIFL Capital has clarified that there is no financial impact on its business operations due to SEBI’s action. The company reassured stakeholders that the warning does not affect its financial performance or ongoing operations.
Comments
r_ashok41
4 days ago
our laws need to be more strict so that these kind of loopholes do not keep on rising.
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