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SEBI Fines SMC Global Securities Rs 1 Lakh for Supervision Lapses, Client Order Violations
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Moneycontrol•01-10-2026, 20:47
SEBI Fines SMC Global Securities Rs 1 Lakh for Supervision Lapses, Client Order Violations
- •SEBI penalized SMC Global Securities Rs 1 lakh for failing to maintain client order records and adequately supervise its authorized person (AP), Amit Lilhare.
- •SMC failed to maintain pre-trade confirmation records for client orders and did not properly supervise Lilhare, who faced complaints of unauthorized trading and fixed return assurances.
- •The company received 322 complaints in FY 2024-25, with 279 between June and September 2024, many related to Lilhare's alleged unauthorized trading and fixed-return promises.
- •SEBI found a pattern of fixed payouts to 161 clients mapped to Lilhare, totaling Rs 1.85 crore from investments of Rs 6.11 crore, with Lilhare receiving commissions.
- •SEBI rejected SMC's arguments regarding verbal orders and double jeopardy, emphasizing the broker's obligation to maintain evidence of client orders and the distinct nature of regulatory proceedings.
Key Questions Answered
SEBI fined SMC Global Securities Rs 1 lakh for failing to maintain client order records and adequately supervise its authorised person, Amit Lilhare, who was linked to unauthorised trading and fixed-return complaints.
SMC received 322 complaints relating to unauthorised trading and fund misappropriation during FY 2024-25, with 279 of them arriving between June and September 2024 regarding Lilhare's operations in Chhattisgarh.
No, SEBI rejected the argument, stating that Article 20(2)'s protection against double jeopardy applies only to criminal proceedings and does not bar regulatory or quasi-judicial actions like monetary penalties.
