SMC Global Securities Ltd disclosed on October 3, 2026 that the Securities and Exchange Board of India had imposed a ₹1 lakh penalty, according to its BSE filing. The company identified the adjudication order as Order/AK/GN/2026-27/32758 and informed exchanges under Regulation 30 of the SEBI listing regulations.

The proceedings followed a thematic inspection covering January 1 to September 30, 2024, focused on verification of unauthorised trading complaints and client order placement. SMC is registered as a stock broker and is a member of BSE, NSE, MCX and NCDEX.

Although the exchange headline categorised the disclosure under award or receipt of orders, the filing itself concerns a regulatory penalty.

Proceedings examined order records and supervision

SEBI's show-cause notice dated July 30, 2025 alleged that SMC had failed to maintain client order placement records and adequately supervise authorised persons. The supplied extract sets out these allegations and the company's responses, but ends before the order's complete findings and penalty reasoning.

In its submissions, SMC denied violating the applicable regulations and circulars. Regarding authorised person Amit Lilhare, the company said it had taken the following steps after identifying irregularities in May 2024:

  • Disabled his trading terminals on May 31, 2024.
  • Issued a notice of dissociation dated July 15, 2024.
  • Filed a police complaint physically on July 22, 2024.

SMC said some clients placed verbal orders during office visits and that certain order placement records remained with the authorised person, who had stopped cooperating. It also submitted that it had supplied some call recordings during inspection and regularly sent clients trade confirmations and other transaction communications.

SEBI addressed objection to parallel proceedings

SMC argued that NSE proceedings on the same subject created duplication and invoked protection against double jeopardy. The adjudicating officer rejected that preliminary objection, stating that the constitutional protection applied to criminal proceedings and did not bar the regulatory proceedings merely because another authority was examining overlapping facts.

The company withdrew its settlement application on February 23, 2026, after which adjudication resumed. A hearing took place on April 2, 2026.

In additional submissions, SMC said it had completed physical inspections of all active authorised persons through exchange-empanelled auditors and complied with NSE directions concerning improvements in supervision.