Motilal Oswal Financial Services Limited has settled an investigation by the Securities and Exchange Board of India (SEBI) regarding potential front-running activities by a client during January 1, 2022 to December 8, 2023. The company resolved the matter by paying a settlement amount of ₹34.85 Lakh. The issue pertained to record maintenance lapses by an authorized person.
SEBI Investigation Settlement
Motilal Oswal Financial Services Limited has settled an investigation initiated by SEBI concerning potential front-running of trades executed by a significant client (referred to as “Big Client”) by certain entities, specifically the Chaturvedi Group. The investigation period spanned from January 1, 2022, to December 8, 2023.
Settlement Details
To resolve the proceedings, Motilal Oswal opted for a settlement mechanism, resulting in a payment of ₹34.85 Lakh. The settlement was formalized through an order dated September 18, 2025.
Underlying Issue and Corrective Actions
The SEBI investigation uncovered certain lapses in record maintenance by one of Motilal Oswal’s Authorised Persons (AP), namely Om Securities, while executing trades related to the Chaturvedi Group entities. While opting for the settlement, the company has not admitted any guilt.
Motilal Oswal has implemented necessary corrective measures to address the identified issues and has reinforced compliance protocols among its Authorised Persons to ensure strict adherence to all applicable rules and regulations.
Impact Assessment
The company has stated that this settlement order does not have a material impact on its financial operations or other activities. The SEBI has also confirmed that it will not initiate any further enforcement action against Motilal Oswal concerning the alleged violations that prompted the investigation.
Source: BSE
