SEBI finds IIFL failed to route debt trades via mandatory RFQ platform

SEBI examined whether the company failed to route debt security trades through the mandatory Request for Quote (RFQ) platform and failed to execute required agreements with third-party sellers.

Who it concerns: IIFL Capital Services Limited

What SEBI found or ordered

• SEBI found prima facie violations of Clause 3.4.1 and Clause 3.2 of Annex-XXI-A of the SEBI Master Circular dated May 22, 2024.
• The inspection covered 280 trades worth Rs 9.59 crores that were executed via off-market mechanisms instead of the mandatory RFQ platform.
• SEBI noted that IIFL did not enter into agreements with five specific third-party vendors (Kanjalochana Finserve, Smest Capital, Tipsons Financial Services, Tipsons Consultancy, and Phillip Capital) until after the inspection began.
• The order was issued under Section 15-I of the SEBI Act, 1992, following a Show Cause Notice dated April 29, 2026, and a hearing held on May 29, 2026.

Also in the document

• IIFL stated in its reply that it temporarily stopped its debt offering operations from June 13, 2025, to address compliance gaps.
• The company argued that the violations were not intentional, citing reliance on a vendor platform (Golden Pi Technologies) and the newness of the OBPP segment.
• The inspection period was from July 26, 2024, to March 31, 2025, which was the initial period after IIFL obtained its OBPP approval.