SEBI adjudicates SMC Global over AP supervision lapses

This order addresses alleged regulatory violations by SMC Global Securities Ltd. regarding the maintenance of client order records and the supervision of an Authorized Person (AP), specifically AP Amit Lilhare, during the period of January to September 2024.

Who it concerns: SMC Global Securities Ltd. (Noticee); Amit Lilhare (Authorized Person)

What SEBI found or ordered

• SEBI conducted a thematic inspection on 'Verification of Unauthorized trading complaints and client order placement' for Jan 1, 2024 to Sep 30, 2024.
• Alleged violation of Regulation 9(b) of Stock Broker Regulations for not maintaining records relating to client order placement.
• Alleged violation of Regulation 9(b) for lack of supervision of Authorized Persons (APs).
• Show Cause Notice (SCN) issued on July 30, 2025.
• Noticee filed a settlement application on September 4, 2025, which was withdrawn on February 23, 2026.
• Hearing granted on April 2, 2026.
• Noticee claims parallel proceedings are pending before NSE on the same subject matter.

Also in the document

• The Noticee (SMC Global Securities Ltd.) is a member of BSE, NSE, MCX, and NCDEX.
• The Noticee states that AP Amit Lilhare had approximately 581 clients and generated turnover of Rs. 93,016.49 Crores in FY 2023-2024.
• The Noticee claims it disabled the AP's terminal on May 31, 2024, and filed a police complaint on July 22, 2024, prior to the SEBI inspection.
• The Noticee argues that the AP withheld bank statements from Kotak Mahindra Bank and State Bank of India, which were available to NSE but not shared with the Noticee.