IIFL Holdings, Motilal Oswal Financial Services crack up to 9% post Sebi order

Shares of IIFL Holdings and Motilal Oswal Financial Services (MOSL) fell up to 9 percent on Monday after the Securities and Exchange Board of India (SEBI) declared the commodity broking arms of both the brokerages not 'fit and proper' for their alleged role in the Rs 5,600 crore NSEL scam in 2013.

"In view of the seriousness of the matter, facts and circumstances of the case, the conduct of the noticee in its functioning as a commodity broker is questionable and has certainly eroded its general reputation, record of fairness, honesty and integrity and has therefore affected its status as a 'fit and proper person' to be an intermediary in the securities market," the designated authorities said in the report submitted to SEBI.

IIFL Holdings shares slumped as much as 8.9 percent to Rs 332.50 per share intraday on the BSE. Motilal Oswal shares fell 5.11 percent intraday to Rs 581 per share.