<p>Markets regulator Sebi on Wednesday imposed a fine of Rs 3 lakh on IIFL Securities Ltd for violating code of conduct for stockbrokers.</p>.<p>The Securities and Exchange Board of India (Sebi) conducted a probe in suspected insider trading by one of the clients of stockbroker IIFL Securities, earlier known as India Infoline Ltd.</p>.<p>During the course of an investigation, Sebi observed that IIFL accepted orders in the trading account of its client, Vimala, from a person other than the client without obtaining proper authorisation and only on the basis of verbal instructions.</p>.<p>The member-client agreement of Vimala with IIFL clearly mentions that a written authorisation letter is required to authorise another person to trade in her account, the regulator noted.</p>.<p>However, IIFL relied on mere oral instructions and thereby failed to exercise due diligence in the conduct of its business as a stockbroker, Sebi said.</p>.<p>"It is of utmost importance that under no circumstances a stockbroker breaches the terms and conditions of the member-client agreement," the regulator said</p>.<p>Lapses by IIFL were violative of the code of conduct for stockbrokers under Stock Brokers Regulations, Sebi said while imposing the penalty.</p>
<p>Markets regulator Sebi on Wednesday imposed a fine of Rs 3 lakh on IIFL Securities Ltd for violating code of conduct for stockbrokers.</p>.<p>The Securities and Exchange Board of India (Sebi) conducted a probe in suspected insider trading by one of the clients of stockbroker IIFL Securities, earlier known as India Infoline Ltd.</p>.<p>During the course of an investigation, Sebi observed that IIFL accepted orders in the trading account of its client, Vimala, from a person other than the client without obtaining proper authorisation and only on the basis of verbal instructions.</p>.<p>The member-client agreement of Vimala with IIFL clearly mentions that a written authorisation letter is required to authorise another person to trade in her account, the regulator noted.</p>.<p>However, IIFL relied on mere oral instructions and thereby failed to exercise due diligence in the conduct of its business as a stockbroker, Sebi said.</p>.<p>"It is of utmost importance that under no circumstances a stockbroker breaches the terms and conditions of the member-client agreement," the regulator said</p>.<p>Lapses by IIFL were violative of the code of conduct for stockbrokers under Stock Brokers Regulations, Sebi said while imposing the penalty.</p>