IIFL Securities Ltd

IIFL Securities Limited, promoted by first generation entrepreneurs, Mr. Nirmal Jain and Mr. Venkataraman Rajamani was incorporated in March 21,1996. IIFL Securities is one of the largest independent fullservice broking house providing diversified financial services and product distribution and is also a SEBI registered Merchant Banker. The Companys retail brokerage and financial product distribution businesses comprises equity, commodities and currency broking, depository participant services, distribution of mutual funds, bonds, fixed income products, portfolio management services (PMS), alternative investment funds (AIF) and other investment products. The Company also offers indepth insight on asset allocation, market dynamics, wealth management and investment strategies to grow and protect customers wealth. The Board of Directors of the Company, at its meeting held on January 31, 2018 had approved the Composite Scheme of Arrangement amongst the Company, IIFL Finance Limited (erstwhile IIFL Holdings Limited IFL), India Infoline Media and Research Services Limited (IIFL MR), IIFL Wealth Management Limited (IIFL Wealth), India Infoline Finance Limited (IIFL Finance), IIFL Distribution Services Limited (IIFL Distribution), and their respective shareholders, under Sections 230232 and other applicable provisions of the Companies Act, 2013, which, interalia, envisages the demerger of the Securities Business Undertaking of IIFL Finance Limited into the Company. The Honble National Company Law Tribunal (NCLT), Mumbai Bench, vide its order dated March 7, 2019, sanctioned the Composite scheme of arrangement and the certified true copy of the NCLT order was received on March 15, 2019. Pursuant to the order, the following parts of the Scheme are made effective: (a) amalgamation of IIFL MR with IFL (b) demerger of the Securities Business Undertaking (as defined in the scheme) of IFL into the Company (c) demerger of the Wealth Business Undertaking of IFL into IIFL Wealth and (d) transfer of the Broking and Depository Participant Business Undertaking of IIFL Wealth to its whollyowned subsidiary, i.e. IIFL Distribution, on a goingconcern basis. However, the merger of India Infoline Finance Limited with IFL shall be made effective on receipt of the requisite licences/ registrations by IFL, to carry on the lending business. Upon the Scheme coming into effect and in consideration of the transfer and vesting of the Securities Business Undertaking into the Company, 18,718,281 Equity Shares of Rs. 10 each, held by IIFL Finance Limited (erstwhile IIFL Holdings Limited) in the Company, were extinguished and cancelled and in lieu of the same, the equity shareholders of IIFL Finance Limited whose name appeared in the Register of Members on record date May 31, 2019 were allotted 1 equity share in IIFL Securities Limited of Rs. 2 each, credited as fully paidup for every one 1 equity share of Rs. 2, fully paidup and held by such equity shareholders in IIFL Finance Limited. Accordingly, 319,234,462 equity shares of Rs. 2 each of the Company were issued and allotted to the eligible shareholders of IIFL Finance Limited on June 6, 2019.Pursuant to the above and the Scheme becoming effective from April 1, 2018, IIFL Facilities Services Limited, IIFL Management Services Limited, IIFL Insurance Brokers Limited, IIFL Commodities Limited, IIFL Wealth (UK) Limited, IIFL Capital Inc., IIFL Asset Reconstruction Limited and India Infoline Foundation (Section 8 Company) have become subsidiaries of the Company in the FY 2019. As per the Scheme, IIFL Finance Limited transferred the assets and liabilities pertaining to the demerged undertaking (Securities Business Undertaking), to the Company at the respective carrying values as appearing in the books of accounts of IIFL Finance Limited from April 1, 2018 (the appointed date).Pursuant to the Composite Scheme of Arrangement become effective from April 1, 2018, IIFL Finance Limited (Formerly IIFL Holdings Limited) ceased to be a Holding Company of the Company.During the financial year 201819, the Company had incorporated IIFL Securities Services IFSC Limited as wholly owned subsidiary. IIFL Facilities Services Limited, a wholly owned subsidiary of company, has acquired 99% stake in Shreyans Foundations LLP which is holding 50% stake in Meenakshi Tower LLP, a joint venture between wholly owned subsidiaries of the Company, IIFL Management Services Limited and Shreyans Foundation LLP. Pursuant to this Meenakshi Towers LLP has become subsidiary of the Company.In December 2018, Securities and Exchange Board of India (SEBI) proposed direct overseas listing of Indian companies and other regulatory changes. SEBI also allowed exchanges in India to operate in equity and commodity segments simultaneously, starting from October 2018. In November 2018 Bombay Stock Exchange (BSE) enabled offering live status of applications filed by listed companies on its online portal and also introduced weekly futures and options contracts on Sensex 50 index.During the year 2019, the Company started commodities broking service providing all securities services under a single platform. Investment Banking earlier carried on under IIFL Finance Limited (formerly IIFL Holdings Limited), now operates under the Company, pursuant to effecting the demerger. In 201920, the Company floated the IIFL Fintech Fund, sponsored by two IIFL Group firms IIFL Finance and IIFL Securities. It launched an investment technology platform WealthDesk that offers a robust, newage digital platform for investors to seamlessly execute portfolio advice in a single click.In 2022, the Company acquired 100% stake in Rajen Chandrakant Securities Private Limited (RCSPL). It launched the two Alternate Investment Fund (AIF) business, one in listed space i.e IIFL Securities Dynamic Fund (SEBI Registered Category III Alternative Investment Fund) and other in unlisted/start up space i.e. IIFL Securities Capital Enhancer Fund (SEBI Registered Category II Alternative Investment Fund).In 2024, the IIFL Securities Online Retail Trading Business Division was transferred to the 5paisa Capital Limited to consolidate the said business under one single entity i.e. 5paisa Capital Limited.