Archive · 29 Nov 2025
SEBI Bans Prabhudas Lilladher for Seven Days
The Securities and Exchange Board of India (SEBI) has banned a stock broker named Prabhudas Lilladher from doing new business for seven days.
This is because they found that the broker did not follow important rules meant to protect investors and manage market risks.
The broker had problems like not having enough money to cover what they owed to their clients, reporting wrong numbers, and charging too much for their services.
The broker said these were mistakes, but SEBI did not accept that excuse.
The ban starts on 15 December 2025.
SEBI also found that the broker moved some of their clients' shares to the wrong account.
The broker has to follow the rules to keep the market safe for everyone.
SEBI has banned Prabhudas Lilladher from taking up any new assignments for seven days starting December 15, 2025.
The broker violated several rules related to client funds, margins, reporting, and brokerage.
SEBI found that the firm had misused client money, failed to settle client accounts on time, incorrectly reported margins and client balances, and charged brokerage beyond the permitted limits.
The broker had a shortfall of about ₹2.70 crore between the money it was supposed to hold for clients and the actual balance available on three days in July 2021.
SEBI rejected the company’s argument that these issues were minor or caused by software or clerical errors.
- Who
- Prabhudas Lilladher Private Limited and the Securities and Exchange Board of India (SEBI)
- What
- SEBI has prohibited Prabhudas Lilladher from taking on new business for seven days due to multiple violations of market-risk and investor-protection rules
- When
- The prohibition will take effect on 15 December 2025
- Where
- India
- Why
- SEBI found 11 violations, including misutilization of client funds, misreporting client exposure, and collecting excess brokerage
- Broker
- Prabhudas Lilladher Private Limited
- Regulator
- Securities and Exchange Board of India (SEBI)
- Prohibition Period
- 15 December 2025 to 22 December 2025
- Number of Violations
- 11
- Total Excess Brokerage Collected
- ₹4,322.75
- Total Client Fund Shortfall
- ₹2.7 crore
- Securities Moved Incorrectly
- ₹1.3 crore
Sources
Sebi bans Prabhudas Lilladher from new business for seven days over rule breaches
SEBI bars Prabhudas Lilladher for 7 days from new business; full order details
SEBI Bars Stockbroker Prabhudas Lilladher Private From Taking Up New Assignments For Seven Days, Starting December 15, 2025
