IIFL Capital Services Limited has announced the allotment of 46,450 equity shares to its employees under the company's Employee Stock Option Scheme. The allotment represents a significant milestone in the company's employee compensation and retention strategy.

ESOP Allotment Details

The Nomination and Remuneration Committee of the Board of Directors approved the allotment through a circular resolution dated February 27, 2026. The shares were allocated to employees who exercised their stock options under the IIFL Securities Limited Employee Stock Option Scheme – 2018 (IIFL ESOS - 2018).

Impact on Equity Base

The allotment has resulted in an expansion of the company's equity base. The total number of outstanding equity shares has increased following the ESOP exercise by employees.

Regulatory Compliance

The company has informed both BSE Limited and The National Stock Exchange of India Limited about the allotment in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The newly allotted equity shares will rank pari passu with the existing equity shares from the date of allotment, ensuring equal rights and privileges for all shareholders.

The ESOP allotment demonstrates the company's commitment to employee participation in its growth story while maintaining transparency in its corporate governance practices through timely regulatory disclosures.

IIFL Capital Services Limited has received significant relief from the Securities Appellate Tribunal (SAT) regarding penalties imposed on its wholly owned subsidiary, IIFL Commodities Limited. The tribunal has further reduced the penalty to Rs. 75 lakh, providing substantial financial relief to the company.

SAT Order Details

The Securities Appellate Tribunal, Mumbai, issued a modified order on February 16, 2026, which was received by the company on February 19, 2026. This latest order represents the second revision of penalties, following SAT's earlier order dated November 28, 2025.

Background of the Case

The case originated from an inspection conducted by the Multi Commodity Exchange of India Limited (MCX) of IIFL Commodities Limited's books of accounts, records, and documents for financial years 2014-15 to 2016-17. The inspection revealed issues related to false/incorrect reporting of margin amounts.

Original Penalties Imposed

The Member and Core Settlement Guarantee Fund Committee (MCSGFC) of MCX had initially imposed substantial penalties through separate orders:

Penalty Reduction Timeline

IIFL Commodities Limited had filed appeals before SAT challenging the original MCSGFC orders. The tribunal has now provided relief through two successive orders:

• November 28, 2025: SAT partly allowed the appeals and reduced penalties to Rs. 40 lakh per year, aggregating to Rs. 1.20 crore
• February 16, 2026: Following a review application, SAT further reduced penalties to Rs. 25 lakh per year, totaling Rs. 75 lakh

Impact Assessment

According to the company's disclosure, apart from the penalty imposed, there has been no significant impact on the financial, operational, or other activities of IIFL Capital Services Limited. The remaining portions of the MCSGFC order remain undisturbed, with only the penalty amount being modified through SAT's intervention.

This development represents a substantial reduction from the original penalty amounts, providing significant financial relief to the IIFL group while resolving the long-standing regulatory matter related to margin reporting compliance.