Mumbai: Stockbroker Prabhudas Lilladher has been barred from taking on new assignments for seven days starting form December 15 following SEBIs investigations of multiple compliance issues. Accoridng to the market regulator, Prabhudas Lilladher misrepsented some client account balances, failed to settle client accounts on time and overcharged brokerage beyond the permissible limits.
“The Noticee is prohibited from taking up any new assignment or contract or launching a new scheme, in so far as maybe applicable to it as a SEBI registered Stock Broker for a period of seven (7) days starting from December 15, 2025 (Monday).” The SEBI order issued on Friday, 28 November by Chief General Manger N Murugan, stated.
The action came after a joint investigation by the SEBI, NSE, MCX and BSE uncovered these lapses for the period between April 1, 2021 and October 31, 2022.
Additionally, it was revealed that the broker passed on penalties levied by clearing corporations for short collection of upfront margins to its clients. SEBI had categorically reiterated that brokers were not permitted to pass on the penalty levied by clearing corporations under any circumstances.
In its defence, Prabhudas Lilladher said the lapses were ‘technical but not intentional’ and attributed them to manual or clerical mistakes. The broker has already paid a penalty of Rs.11 lakh for a separate allegation and a ban on its operations could cause a lasting harm to its reputation.
