"The Income Tax survey was related to collection of transactions and verification details of clients of Indiabulls Securities, who have dealt in penny stocks," the company informed the Bombay Stock Exchange on Wednesday.
Most of such client accounts had been already shut down by Indiabulls Securities Ltd as a part of its internal due diligence and compliance process, it said.
Indiabulls also said that the purpose of the visit of Income Tax department was not related to any inspection of accounts of any of its subsidiary companies group and was limited to client details of Indiabulls Securities.
The broking firm had paid income tax to the tune of Rs 36 crore 9Rs 360 million) for the first six months of 2005-06.
Indiabulls Securities is one of the subsidiaries of the Indiabulls Group, which is diversified into financial and real estate businesses.