IIFL Capital Services fined ₹2.14 lakh for FEMA violations

1 min read Updated on 01 Jul 2026, 05:35 AM

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Naman SScanX News Team

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IIFL Capital Services received a compounding order from the RBI imposing a penalty of ₹2,14,858 for contravening FEMA regulations. The violations involved repatriating disinvestment proceeds through a non-designated bank and delaying the submission of Annual Performance Reports. The company stated there is no material impact on its operations aside from the penalty amount.

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IIFL Capital Services has been penalized ₹2,14,858 by the Reserve Bank of India (RBI) for violating regulations under the Foreign Exchange Management Act (FEMA), 1999. The central bank's Foreign Exchange Department in Mumbai issued the compounding order on June 30, 2026, concluding proceedings against the financial services firm for procedural lapses in its overseas investment activities.

The RBI found that the company contravened Regulation 9(3) of FEMA 400 by repatriating disinvestment proceeds through a non-designated Authorised Dealer (AD) Bank. Additionally, the regulator cited a breach of Regulation 15(iii) of FEMA 120/RB-2004 due to the delayed submission of seven Annual Performance Reports (APRs) related to its overseas direct investment in a foreign entity.

Sr. No.	Particular	Remark/Update
1	Name of the authority	Reserve Bank of India, Foreign Exchange Department, Mumbai (RBI)
2	Nature and details of the action(s) taken or order(s) passed	The RBI passed a compounding order dated June 30, 2026, imposing a compounding amount of ₹2,14,858.
3	Date of receipt of direction or order	June 30, 2026
4	Details of the violation(s)/contravention(s) committed	Contravention of Regulation 9(3) of FEMA 400 and Regulation 15(iii) of FEMA 120/RB-2004.
5	Impact on financial, operation or other activities	No material impact except for the compounding amount of ₹2,14,858.

In its filing to the stock exchanges, the company clarified that aside from the monetary penalty, there is no material impact on its financial, operational, or other activities. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Historical Stock Returns for IIFL Capital Services

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.06%	-0.09%	-1.90%	-11.72%	+2.01%	+233.63%

Will IIFL Capital Services implement additional compliance measures to prevent future FEMA violations?

Could this penalty prompt the RBI to increase scrutiny on similar financial services firms?

How might investors perceive IIFL Capital Services' risk management following this regulatory action?

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IIFL Capital Services appoints Amit Gupta as Chief Compliance Officer

2 min read Updated on 16 Jun 2026, 04:34 PM

Reviewed by

Ashish TScanX News Team

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IIFL Capital Services Ltd has appointed Amit Gupta as its new Chief Compliance Officer and Senior Management Personnel, effective June 15, 2026, replacing Prasad Umarale. Gupta, a Chartered Accountant with over two decades of experience, previously served as Group Chief Compliance Officer at ASK Investment Managers.

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IIFL Capital Services Ltd has designated Amit Gupta as its new Chief Compliance Officer (CCO) to strengthen its regulatory compliance and risk management framework. The appointment, effective June 15, 2026, was approved by the board of directors through a circular resolution. Gupta replaces Prasad Umarale, who ceased to hold the position of CCO and Senior Management Personnel (SMP) on the same date.

The company disclosed the appointment pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was read with SEBI Master Circular No. HO/CFD/PoD2/CIR/P/0155 dated January 30, 2026. The company secretary, Meghal Abhishek Shah, confirmed the filing on behalf of the company.

Amit Gupta is a Chartered Accountant with over two decades of experience in regulatory compliance, corporate governance, and risk management across the financial services sector. His expertise covers Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Registered Investment Advisers (RIAs), and Wealth Management. He has previously worked on offshore fund structures and mutual funds, focusing on building compliance frameworks and governance standards.

Prior to joining IIFL Capital Services, Gupta served as Group Chief Compliance Officer at ASK Investment Managers. In that role, he led regulatory compliance, regulatory liaison, and enterprise-wide compliance transformation initiatives. His experience includes regulatory affairs, policy advocacy, compliance automation, and risk monitoring, having worked with domestic and global institutional stakeholders.

The details of the appointment and cessation of the previous officer are outlined in the table below:

Sr. No	Particular	Description
1	Reason for change	To designate Mr. Amit Gupta as the Chief Compliance Officer (CCO) of the Company in place of Mr. Prasad Umarale. Mr. Amit Gupta has also been identified as a Senior Management Personnel (SMP) of the Company.
2	Date of appointment/cessation	Date of appointment of Mr. Amit Gupta as CCO and SMP: June 15, 2026. Term of appointment: Full-time employment with the Company. Date of cessation of Mr. Prasad Umarale as CCO and SMP: June 15, 2026.
3	Brief profile	Mr. Amit Gupta is a Chartered Accountant with over two decades of experience in regulatory compliance, corporate governance, and risk management across the financial services sector. His expertise spans Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Registered Investment Advisers (RIAs), and Wealth Management, Offshore Fund structures and Mutual Funds where he has played a pivotal role in building and strengthening compliance frameworks, enhancing governance standards, and driving effective risk oversight. Prior to joining the Company, he served as Group Chief Compliance Officer at ASK Investment Managers, where he led regulatory compliance, regulatory liaison, and enterprise-wide compliance transformation initiatives. He brings extensive experience in regulatory affairs, policy advocacy, compliance automation, and risk monitoring, having worked closely with domestic and global institutional stakeholders, regulators, and industry bodies to strengthen governance frameworks and drive best-in-class compliance practices.
4	Disclosure of relationships	Not Applicable