SAT pauses SEBI's 7-day ban on Prabhudas Lilladher
Prabhudas Lilladher, a well-known stock brokerage, just got a temporary break from a seven-day ban by SEBI.
The Securities Appellate Tribunal (SAT) stepped in on December 9, so the firm can keep onboarding new clients while it appeals.
SEBI had barred Prabhudas Lilladher from taking on any new business for seven days over rule breaches.
Why does this matter?
If you invest or follow the markets, this is about trust and transparency—SEBI's action came after inspections found issues like misuse of client funds and misreporting client exposures between April 2021 and October 2022.
The firm was even short ₹2.7 crore in client money at times, which raised some eyebrows.
What's next?
Prabhudas Lilladher says its long compliance history should count for something and pointed out that SEBI usually fines firms instead of suspending them.
SAT has given SEBI six weeks to respond, with the next hearing set for March 2026.
For now, it's business as usual—but all eyes are on how this plays out for both investors and the industry.