Motilal Oswal settles case with Sebi, pays Rs 34.85 lakh as settlement charges

Mumbai: Sebi has settled proceedings against Motilal Oswal Financial Services in a case linked to suspected front-running of a large client's trades by the Chaturvedi Group.

The broker paid ₹34.85 lakh as settlement charges. The regulator alleged that the brokerage failed to exercise due skill and care by not maintaining proper records of client order instructions and attempting to create supporting documents after orders were executed. A show-cause notice was issued in February this year, it said.

“The Sebi settlement order relates to the involvement and non-maintenance of records by one of our authorised partners (AP)- Om Securities. We had to opt for the settlement route, and the matter now stands resolved,“ Motilal Oswal Financial Services said in a statement.