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IIFL Finance Limited

Trade name	IIFL Finance Limited
Formerly	IIFL Holdings Limited
Company type	Public company
Traded as	NSE: IIFL BSE: 532636
Industry	Financial services
Founded	1995
Founder	Nirmal Jain
Headquarters	India
Area served	India Canada United States United Kingdom Switzerland Singapore Hong Kong Mauritius UAE
Key people	Nirmal Jain (Chairman) R Venkataraman (Group Managing Director)
Revenue	₹5,989.40 crore (US$720 million) (2021)
Operating income	₹1,004.78 crore (US$120 million) (2021)
Net income	₹760.12 crore (US$91 million) (2021)
Total assets	₹40,666.92 crore (US$4.9 billion) (2021)
Total equity	₹5,387.51 crore (US$650 million) (2021)
Number of employees	300
Website	indiainfoline.com

IIFL Finance Limited (formerly IIFL Holdings Limited) d/b/a IIFL and India Infoline Finance Limited, is an Indian diversified financial services company headquartered in Mumbai. The organisation was founded by Nirmal Jain. IIFL and its group companies are backed by Canadian investor Prem Watsa, private equity firm General Atlantic and CDC Group, the UK Government's private equity arm. IIFL is ranked among the top seven financial conglomerates in India and as the top independent financial services firm in India in terms of market capitalisation. Nirmal Jain is the chairman of the group, while R Venkataraman is the group managing director and co-promoter.

History and overview - IIFL Group

IIFL was founded on 18 October 1995, by Nirmal Jain, a 1986 graduate from University of Mumbai and an alumnus of Indian Institute of Management, Ahmedabad. Jain is among the few successful entrepreneurs post the economic liberalisation era in India ushered by PV Narasimha Rao. Jain was previously employed with Hindustan Unilever Limited. The company was founded as Probity Research and Services Private Limited which provided research on the Indian economy, businesses and corporates. The name was later changed to India Infoline Limited.

A few years into the business, the organisation found itself with clients which included research organisations, banks and corporates. They then began launching their research products to become more noticeable in the market. In the meanwhile, the dotcom revolution was beginning to take place in India. The website was created in 1999.

Taking the business one step ahead this group of consultants opened a trading portal 5paisa in 2000. Thus moved into the business of being a full service broking agency. During this time they widened their distribution network.

In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became tough. The organisation then decided to tie-up with leading Life Insurance company ICICI Prudential, thus putting to use its distribution network and becoming India's first corporate agent for insurance.

Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: 532636) is India's leading integrated financial services group with diverse operating businesses, mainly Non Banking and Housing Finance, Wealth and Asset Management, Broking, Financial Product Distribution, Investment Banking, Institutional Equities, Realty and Property Advisory Services.

IIFL Holdings has a consolidated net-worth of over Rs 45 billion; global presence in Canada, United States, UK, Singapore, Hong Kong, Switzerland, Mauritius, and UAE; An employee workforce of over 10,500, a strong network of over 2,250 service locations spread across India, over ₹233 billion loan assets under management; over ₹1,250 bn wealth assets under advice, management and distribution; over 500 stocks under research and more than 300 of the world's top institutional investors relying on IIFL's research.

Involvement in NSEL case

IIFL along with few other top brokers have been accused of various irregularities on NSEL. Agencies including EOW-Mumbai and SFIO have found the top 5 brokers including IIFL guilty of misselling NSEL contracts, KYC manipulation, client code modification, benami transactions & infusion of black money through their NBFCs on the Exchange platform. The EOW had arrested senior employees of three brokerages namely IIFL, Motilal Oswal & Anand Rathi in March, 2015. This was followed by the market regulator, SEBI issuing multiple show-cause notices to the brokers in 2016, 2017, 2018 & 2019 respectively. The EOW-Mumbai in its supplementary charge sheet has also accused the three brokerages IIFL, Motilal Oswal & Anand Rathi of cheating clients. In February 2019, SEBI declared IIFL and Motilal Oswal ‘not fit and proper’ as commodity derivative brokers based on the recommendations of SFIO & EOW's report.

Controversy About Commingling of Clients Funds

On 19 June, 2023, the Securities and Exchange Board of India (SEBI) passed an order restraining IIFL from accepting new clients for a period of two years, and imposing a penalty of Rs 2 crore. The order read, "The Noticee firstly didn’t assign its accounts appropriate nomenclature wherein it was keeping clients’ monies so as to clearly label them as ‘client accounts’. Additionally, it was mixing clients’ funds with its own funds before using those mixed funds for its own proprietary usage. In the end, it was using funds of its credit balance clients’ to not only fund trades of its debit balance clients but also to fund its own trades."

The Securities Appellate Tribunal (SAT) set aside the SEBI's order prohibiting IIFL to accept new clients in December 2023. Also the penalty was reduced to Rs 20 lakh from Rs 2 crore. SAT said that there has been no misuse of client funds. However, IIFL failed to change the nomenclature of the bank accounts of the clients. Considering it only as a technical breach, the penalty of Rs 20 lakh was deemed sufficient.

Funding

India Infoline Finance is a subsidiary of IIFL Holdings Ltd which in 2020, raised ₹100 Crore by issuing non-convertible debentures.

Awards and recognition

IIFL has been awarded by Euromoney for the Best Private Banking Services Overall in India for 2017. It has also been adjudged as the Best Private Bank in India at the Global Finance Best Private Bank Awards in 2017.

• Euromoney awards IIFL for Best Private Banking Services - India, 2017.
• ET Now - Dealing Room Heroes, 2017.

References

1. ^ "IIFL Finance Consolidated Profit & Loss account, IIFL Finance Financial Statement & Accounts". www.moneycontrol.com. Retrieved 13 September 2021.
2. ^ "IIFL Finance Consolidated Balance Sheet, IIFL Finance Financial Statement & Accounts". www.moneycontrol.com. Retrieved 13 September 2021.
3. "IIFL Holdings Limited: Private Company Information". Bloomberg.com. Retrieved 8 September 2018.
4. "How IIFL Chairman Nirmal Jain became a billionaire by serving the new rich". business-standard.com. 16 March 2018. Retrieved 27 April 2018.
5. "IIFL Annual Report 2016" (PDF). indiainfoline.com. Retrieved 20 March 2017.
6. "Nirmal Jain Profile". www.economictimes.com. Retrieved 20 March 2017.
7. "Nirmal Jain Chairman/Founder IIFL Profile". www.bloomberg.com. Retrieved 20 March 2017.
8. "The rise of Indian financial conglomerates". www.livemint.com. July 2016. Retrieved 20 March 2017.
9. Sinha, Shilpy (14 September 2016). "What makes investors trust their money with these 5 financial supermarkets of India". The Economic Times. www.economictimes.com. Retrieved 20 March 2017.
10. "IIFL Holdings History - IIFL Holdings Information - The Economic Times". economictimes.indiatimes.com.
11. "From IIM to Dalal Street: A Tale of Two Batchmates, Rasheesh Shah and Nirmal Jain". The Economic Times. www.economictimes.com. 24 May 2016. Retrieved 20 March 2017.
12. ^ Sinha, Shilpy (14 September 2016). "What makes investors trust their money with these 5 financial supermarkets of India". The Economic Times.
13. Mascarenhas, Rajesh (2 November 2016). "5Paisa going places, Street debut comes next". The Economic Times.
14. "IIFL:Natl India Stock Quote - IIFL Holdings Ltd". Bloomberg.com.
15. "NSE:IIFL - Google Search". www.google.com.
16. "Untitled Page". www.bseindia.com.
17. "LinkedIn". www.linkedin.com.
18. "IIFL Holdings Share Price Live, IIFL Holdings Stock Price Today". The Economic Times.
19. "IIFL Capital". iiflcap.com.
20. "IIFL Institutional Equities: Latest News & Videos, Photos about IIFL Institutional Equities - The Economic Times". The Economic Times.
21. "Iifl Institutional Equities - Latest & Breaking News on Iifl Institutional Equities - Photos, Videos, Breaking Stories and Articles on Iifl Institutional Equities". Moneycontrol.
22. "NSEL scam: 2015 police report gives SEBI fresh ammo against brokers". The Hindu Business Line. 6 January 2019.
23. Rukhaiyar, Khushboo Narayan, Ashish (3 March 2015). "NSEL case: Mumbai Police arrests three top brokerage executives". Mint.{{cite web}}: CS1 maint: multiple names: authors list (link)
24. "EOW arrest three top brokers in NSEL scam". 4 March 2015 – via Business Standard.
25. Sahgal, Ram (4 January 2019). "5 brokers issued supplementary notices". The Economic Times.
26. Jha, Dilip Kumar (3 January 2019). "Sebi issues another show-cause notice to NSEL brokers in 2013 scam probe" – via Business Standard.
27. "Non-defaulting brokers named in NSEL case". The Economic Times. 10 January 2019.
28. "EOW submits charge sheet against 63 in NSEL scam". The Economic Times. 28 December 2018.
29. K.R.Srivats (January 2019). "NSEL scam: SFIO wants SEBI to put broker-firms through 'fit and proper' test". @businessline.
30. "NSEL Scam: SEBI declares Motilal Oswal, IIFL 'not fit and proper' as commodity derivative brokers". www.businesstoday.in. 23 February 2019.
31. Upadhyay, Jayshree P. (23 February 2019). "NSEL case: Commodity arms of Motilal Oswal, IIFL not fit and proper, says Sebi". Mint.
32. Zachariah, Reena (23 February 2019). "Sebi rules Motilal Oswal, IIFL commodity arms 'not fit and proper'". The Economic Times.
33. "IIFL Securities cannot accept new clients for two years: Sebi". MoneyControl. 21 June 2023.
34. "SAT sets aside Sebi order prohibiting IIFL Securities from taking new clients". Economic Times. 7 December 2023.
35. "IIFL Finance raises Rs 100 crore through NCDs". Deccan Herald. 19 August 2020. Retrieved 22 August 2020.
36. "IIFL Finance raises Rs 100 crore through NCDs on private placement basis". Business Standard India. 19 August 2020. Retrieved 22 August 2020.
37. "IIFL Finance raises Rs 100 crore through NCDs". The Pioneer. Retrieved 22 August 2020.
38. "Euromoney". Euromoney.
39. "Global Finance Magazine - Global Finance Names The World's Best Private Banks 2017". Global Finance Magazine. 2 May 2023.
40. "Asiamoney Best Bank Awards 2017: India". Euromoney.
41. "Dealing room heroes at IIFL". 20 April 2017 – via economictimes.indiatimes.com.

External links

• India Infoline Official website — Indiainfoline.com
• IIFL Capital Services Ltd. Corporate Website - IIFL Capital Services Ltd.

• Financial services companies of India
• Financial services companies based in Mumbai
• Indian companies established in 1995
• Brokerage firms
• 1995 establishments in Maharashtra
• Financial services companies established in 1995
• Companies listed on the National Stock Exchange of India
• Companies listed on the Bombay Stock Exchange