The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 25 lakh on IIFL Securities for flouting regulatory norms in the matter related to ICICI General Lombard Insurance Company block deals back in 2019.
The SEBI conducted an investigation into the block deals executed by FAL Corporation in the scrip of ICICI General Lombard Insurance Co to check for any manipulation of reference price considered for execution of the block deal trades. This was for the April 2019 to September 2019 period.
The trades executed by IIFL Securities on behalf of its client FAL were fraudulent and were carried out with the intention to manipulate the price of ICICI General Lombard Insurance shares for the purpose of influencing the volume weighted average price for the subsequent block deal transactions.
IIFL Securities operates as an investment management company. The company offers insurance, loans, mutual funds, property solutions, and wealth management services.