New Delhi, Dec. 7 -- The Securities Appellate Tribunal (SAT) Thursday set aside the Securities and Exchange Board of India (Sebi) order prohibiting IIFL Securities from onboarding new clients for two years and reduced the fine imposed on the brokerage house to Rs.20 lakh from Rs.1 crore.

"There has been no misuse of client funds and by wrongly considering the non-funded portion of the bank guarantee as per the 2016 circular, an attempt has been made out to show that there was a misuse of client funds which, in our opinion, is patently erroneous," SAT said in their order.

"On account of the aforesaid, the direction of the WTM debarring the appellant under the Intermediaries Regulations from taking new client for a period of two years can...