Motilal Oswal Share Price: IIFL Holdings, Motilal Oswal tumble up to 9% on Sebi’s NSEL order

Shares of IIFL Holdings and Motilal Oswal Financial Services (MOFSL) fell up to 9% in Monday trade in response to the adverse Sebi order on the two companies’ commodity derivatives subsidiaries.IIFL Holdings shares slumped nearly 9% intraday while Motilal Oswal shares fell over 5% on the BSE.However, the stocks managed to pare some of their losses later.The shares of IIFL Holdings closed 0.27% down at Rs 364.35, while Motilal Oswal stood 1.52% lower at 603 on BSE.The Securities and Exchange Board of India (Sebi) order that declared leading brokers Motilal Oswal Commodities and India Infoline Commodities as not being ‘fit and proper’ to undertake commodities derivatives trading has sent a ripple of fear through them and other financial services firms over whether this will apply to all their business activities, ET reported.The market awaits similar orders against several other brokers for their alleged role in the Rs 5,500-crore National Spot Exchange Limited ( NSEL ) scam in 2013. The bigger concern is whether the capital market regulator and the Reserve Bank of India will now impose the ‘fit and proper’ criteria on other units that they run such as stock broking, non-banking finance companies (NBFCs), mutual funds and portfolio management services, the reported added.The regulator said it had initiated enquiry proceedings against about 300 brokers and is likely to pass orders on them.