SEBI Issues Warning Letter To IIFL Capital's Merchant Banking Division

The Securities Exchange Board of India issued an administrative warning letter to IIFL Capital Services last week with regards to due diligence in debt securities, the company informed exchanges.

SEBI conducted an inspection with regards to debt issues handled by the company's merchant banking division for the period April 1, 2022, to April 30, 2024.

After the company's response on the same, SEBI issued an administrative warning letter pertaining to due diligence carried out by the company relating to disclosure of individual break-up of issue related expenses and timelines for payment of fees to each intermediary in the offer documents.

The company has said that there is no material impact on the same.

SEBI has in the past banned debt merchant banking businesses of companies such as Axis Capital and JM Financial, alleging violation of rules.

IIFL Capital Services, formerly known as India Infoline Limited, is one of the largest independent full-service retail and institutional broking houses in India.