Motilal Oswal settles SEBI investigation for ₹3.48 million

Motilal Oswal Financial Services Limited (MOFSL) announced on September 19, 2025, that it has settled an investigation with the Securities and Exchange Board of India (SEBI) related to alleged front-running trades. The investigation, which covered the period from January 1, 2022, to December 8, 2023, examined whether trades by a "Big Client" were front-run by entities within the Chaturvedi Group. Pursuant to a show cause notice issued by SEBI, MOFSL opted to resolve the matter through a settlement mechanism.

On September 18, 2025, SEBI issued a settlement order, leading MOFSL to pay a settlement amount of ₹34,85,000. The company clarified that the settlement order primarily pertained to certain lapses in record maintenance by one of its authorized persons, Om Securities, during the execution of trades for Chaturvedi Group entities. MOFSL emphasized that there was no admission of guilt, and the matter is now resolved.

The company further stated that the settlement has no material impact on its financial, operational, or other activities, beyond the settlement amount. SEBI has also confirmed that no further enforcement action will be initiated against MOFSL for the alleged violations. MOFSL has since implemented corrective measures and sensitized all authorized persons and employees to ensure adherence to pre-trade consent and order instructions.