10 hrs ago
SEBI Fines SMC Global Securities Over Client Record, Supervision Lapses
SEBI is the regulator that checks whether stockbrokers follow market rules.
It inspected SMC Global Securities for the period from January through September 2024.
SEBI said the broker could not provide some records showing that clients had given trading instructions.
It also said the broker did not properly supervise an authorised person named Amit Lilhare.
The regulator found that 161 of 343 clients connected to him showed a fixed payout pattern.
These clients had investments totaling Rs 6.11 crore.
Their payouts were more than Rs 1.84 crore during the inspection period.
SEBI fined the broker Rs 1 lakh for these compliance failures.
SEBI imposed a Rs 1 lakh penalty on SMC Global Securities.
The inspection covered January to September 2024 and examined unauthorised-trading complaints.
SEBI said the broker lacked records showing client instructions before some orders were placed.
The regulator found inadequate supervision of authorised person Amit Lilhare, including payout monitoring.
Among 343 active clients linked to Lilhare, 161 showed fixed payouts involving Rs 6.11 crore in investments and over Rs 1.84 crore in payouts.
- Who
- The Securities and Exchange Board of India imposed the penalty on SMC Global Securities and cited supervision involving authorised person Amit Lilhare.
- What
- SEBI fined SMC Global Securities Rs 1 lakh for missing client order records and inadequate authorised-person supervision.
- Where
- The report identifies New Delhi as the dateline; the broker is registered with SEBI and belongs to several exchanges.
- When
- The inspection covered January to September 2024; SEBI issued its order on Thursday.
- Why
- SEBI said the broker violated stock-broker regulations and other applicable market norms through recordkeeping and supervision lapses.
Key facts
- Penalty
- Rs 1 lakh
- Regulator
- Securities and Exchange Board of India (SEBI)
- Inspection period
- January to September 2024
- Clients mapped to Amit Lilhare
- 343 active clients
- Clients showing fixed payouts
- 161
- Client investments
- Rs 6.11 crore
- Client payouts
- More than Rs 1.84 crore
Sources
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