Is it a compliance issue if an AP and their employee transfer funds to each other, and both have demat accounts with IIFL?

Is it a compliance issue if an AP and their employee transfer funds to each other, and both have demat accounts with IIFL?

Yes, this is a compliance concern. Such fund transfers must have a valid justification. If the transfer is due to a genuine, documented loan taken by the employee, it is acceptable. However, any other reason is not permitted and may violate compliance policies.