Market regulator penalises stock broker SMC Global Securities over record lapses

Capital market regulator Sebi has levied a one lakh rupee fine on SMC Global Securities for failing to comply with rules on maintaining client order placement records and checking the work of an authorised person. The order follows a check of the stock broker carried out between January and September 2024, which looked at complaints about unauthorised trades and how client orders were placed. Sebi found that the firm did not keep proper pre-order placement records for certain clients and failed to provide records for multiple orders in an order passed on Thursday, October 1, 2026.

Supervisory Issues

The market watchdog also pointed out gaps in how the broker watched over authorised person Amit Lilhare, including failing to properly monitor bank accounts that received commissions and checking payout requests made by clients. Out of 343 active clients linked to Lilhare, 161 showed a pattern of fixed payouts involving client investments worth six crore eleven lakh rupees and payouts of over one crore eighty-four lakh rupees during the check. Because of these acts, the firm broke Stock Brokers Regulations and other market norms. SMC Global Securities is registered with Sebi and belongs to major exchanges like BSE, NSE, MCX, and NCDEX.

Context

Stock brokers must keep clear records of every trade order to protect regular investors from hidden risks and unauthorised activity. Regulators run routine checks on financial firms to make sure they follow market rules and keep proper control over their agents.