Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
Client-fund commingling and account-nomenclature proceeding
SEBI alleged that IIFL had not properly labeled client-money accounts and had mixed client funds with proprietary funds. It imposed a two-year restriction on accepting new clients and a ₹2 crore penalty. The Securities Appellate Tribunal later set aside the restriction and reduced the penalty to ₹20 lakh, treating the remaining issue as a technical breach and finding no misuse of client funds as described in the tribunal outcome.
2019
Commodity-derivatives fit-and-proper ruling
SEBI declared IIFL not fit and proper to operate as a commodity-derivatives broker, referring to findings associated with the NSEL matter and reports from the SFIO and Mumbai Economic Offences Wing.
2015
NSEL-related brokerage investigations
IIFL was among brokerages investigated in connection with the National Spot Exchange Limited case. Reference material describes allegations involving the sale of NSEL contracts, KYC manipulation, client-code modification, benami transactions and related fund flows. Senior employees of several brokerages were arrested by Mumbai's Economic Offences Wing in 2015.