We wish to inform the Exchanges that SEBI has imposed a penalty of Rs. 3,00,000 on the Company in relation to the activities of the Authorized Persons.
Awaiting price reaction for this filing.
SEBI has imposed a penalty of Rs. 3,00,000 on Motilal Oswal Financial Services Limited following an Adjudication Order dated June 9, 2025. The penalty relates to lapses observed during a thematic inspection on 'Control over Authorized Persons' covering April 2022 to January 2024. The issues were found at two Authorized Persons — Merit Capital Market Services Pvt. Ltd. and Triventure Services Pvt. Ltd. — concerning the use of trading terminals and operational activities. The company has already taken corrective steps, including training and internal communication to sensitize Authorized Persons. The order and penalty amount have been disclosed under SEBI's Listing Regulations.
The penalty of Rs. 3 lakh is very small relative to MOFSL's size and the company has confirmed no material impact on its financials, operations, or other activities. Short-term sentiment impact is likely negligible, though it highlights the need for tighter oversight of franchisee/sub-broker operations.