Tax authorities conduct searches at IIFL group companies; shares fall

India's income tax authorities are undertaking search operations at three IIFL group companies, IIFL Finance, 360 One Wam and IIFL Securities, two sources familiar with the development said on Tuesday.

It was not immediately clear what information was being sought by the tax officials as employees present in offices of the companies were not allowed to use phones, one of the sources said.

Shares of 360 One, down 7.6%, fell the most among IIFL group stocks, while IIFL Finance shares were down 3.5% and IIFL Capital Services lost about 2.1% in mid-day trade.

IIFL group, the companies and the income tax department did not immediately respond to Reuters' request seeking comments.