The Securities Appellate Tribunal (SAT) has further revised the penalty imposed on IIFL Commodities Limited, a wholly owned subsidiary. The penalty, originally related to false/incorrect margin reporting for FY 2014–15 to FY 2016–17, has been significantly reduced. The final revised penalty aggregates to ₹75 lakh, or ₹25 lakh per financial year, following a review application, with no major financial impact on the parent company.
Tribunal Modifies Penalty on Subsidiary
Further to previous disclosures, the Securities Appellate Tribunal (SAT), Mumbai, issued an Order on February 16, 2026, which modifies an earlier directive dated November 28, 2025. This modification specifically pertains to the penalty levied on IIFL Commodities Limited, the company’s wholly owned subsidiary.
Details of the Penalty Reduction
The case originated from an inspection by The Multi Commodity Exchange of India Limited (MCX) concerning the subsidiary’s books for financial years 2014–15 to 2016–17 regarding the false/incorrect reporting of margin amounts.
- Initial penalties imposed by the MCX Member and Core Settlement Guarantee Fund Committee (MCSGFC) totaled approximately ₹5.32 crore across the three financial years (₹3,29,90,211/- for FY 2014–15, ₹1,19,24,568/- for FY 2015–16, and ₹62,35,182/- for FY 2016–17).
- The initial SAT Order on November 28, 2025, had reduced the total penalty to ₹1.20 crore (₹40 lakh per year).
- Following a subsequent review application, the latest SAT Order dated February 16, 2026, has further reduced the penalties to an aggregate of ₹75 lakh, equating to ₹25 lakh per financial year.
The remaining portions of the original MCSGFC Order remain undisturbed.
Financial and Operational Impact
Regarding the impact on IIFL Capital Services Limited, the announcement clarifies that, apart from the monetary penalty itself, there has been no significant impact on the financial, operational, or other activities of the listed entity.
The receipt date for the final SAT Order was February 19, 2026.
Source: BSE
