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Sebi Fines SMC Global Securities for Compliance Lapses
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News18•02-10-2026, 15:15
Sebi Fines SMC Global Securities for Compliance Lapses
- •Capital market regulator Sebi has imposed a Rs 1 lakh fine on SMC Global Securities.
- •The penalty is for failing to comply with norms on maintaining client order-placement records and supervision of an authorised person.
- •A thematic inspection by Sebi for January-September 2024 revealed the deficiencies.
- •SMC Global Securities did not maintain appropriate pre-order placement records for certain clients.
- •Deficiencies were also found in the supervision of authorised person Amit Lilhare, including monitoring bank accounts and verifying payout requests.
Key Questions Answered
Sebi levied a Rs 1 lakh fine on SMC Global Securities for failing to comply with norms regarding the maintenance of client order-placement records and the proper supervision of an authorized person, Amit Lilhare.
The market watchdog discovered deficiencies in supervising authorized person Amit Lilhare, including a failure to properly monitor bank accounts receiving commissions and verify client payout requests. Specifically, 161 of 343 active clients mapped to Lilhare exhibited a pattern of fixed payouts involving significant client investments and payouts during the inspection period.
The Securities and Exchange Board of India conducted a thematic inspection of the stock broker for the period between January and September 2024.
