IL&FS Financial Services Pays Rs13.62 Lakh To Settle 'Fit & Proper' Declaration Case with SEBI
Moneylife Digital Team 31 March 2023
Infrastructure Leasing & Financial Services Ltd (IL&FS) group company IL&FS Financial Services Ltd (IFIN) has paid Rs13.62 lakh to settle a case of 'fit & proper' declaration with the Securities and Exchange Board of India (SEBI). 
In an order, Amar Navlani, adjudicating officer (AO) of SEBI, says, "In view of the acceptance of the settlement and the receipt of settlement amount by SEBI, the instant adjudication proceedings initiated against IFIN vide show cause notice (SCN) NoEAD-5/MC/RM/16064/2022 dated 12 April 2022 are hereby disposed of in terms of Section 15JB of the SEBI Act read with Regulation 23(1) of Settlement Regulations."
The case is related to the submission of fit & proper declarations by IFIN to the Metropolitan Stock Exchange of India (MSEI). IFIN holds a 2.48% stake in MSEI. In an email on 21 January 2020, MSEI informed SEBI that it had received fit & proper declarations from all of its stakeholders holding more than 2% stake. However, despite several reminders, it received no response from IFIN about the fit and proper declarations.
SEBI then issued an SCN and initiated adjudication proceedings against IFIN. On 17 June 2022, IFIN filed an application seeking a settlement in the matter without admitting or denying the findings of fact and conclusions of the law.
The internal committee of SEBI on 11 August 2022 considered the application and recommended Rs13.65 lakh as the settlement amount, provided that IFIN submits the fit and proper declaration to the satisfaction of MSEI.
In September and November last year, IFIN submitted fit and proper declarations for financial years 2019 to 2022 to MSEI. 
The matter was then sent to the high-powered advisory committee (HPAC) of SEBI. In its meeting on 14 December 2022, the HPAC recommended that the application for settlement of Rs13.65 lakh may be accepted.
The HPAC recommendation was placed before the panel of whole-time members (WTMs) of SEBI, who approved it on 18 January 2023. Following a communication from SEBI, the company deposited Rs13.65 lakh as the settlement amount.
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