Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 2 lakh on IIFL Capital Services Limited for violating regulatory requirements governing its online bond platform. The violations included executing 280 trades worth Rs 9.59 crore through off-market mechanisms instead of the mandatory Request for Quote (RFQ) platform of a recognised stock exchange.
In an adjudication order issued on Tuesday, SEBI also found that the company had offered debt securities belonging to third-party sellers on its online bond platform without entering into the mandatory written agreements with them.
The inspection covered the period from July 26, 2024, when IIFL Capital received approval to operate as an Online Bond Platform Provider (OBPP), to March 31, 2025.
According to the order, SEBI found that 280 trades involving listed debt securities, with a total value of Rs 9.59 crore, had been executed through off-market mechanisms rather than routed through the RFQ platform of a recognised stock exchange, as required under SEBI regulations.
The regulator also found that IIFL Capital had not entered into agreements with five third-party sellers whose securities were offered on its platform. The company subsequently executed the required agreements after the inspection team pointed out the lapse.