SEBI penalised SMC Global Securities over deficiencies in client order records and supervision of its authorised person. The regulator also flagged fixed payout patterns involving 161 clients, with investments of ₹6.11 crore and payouts exceeding ₹1.84 crore.
SEBI has penalised SMC Global Securities for deficiencies in maintaining pre-order placement records and providing records related to certain client orders. The regulator also identified shortcomings in the broker’s supervision of its authorised person, Amit Lilhare, including monitoring of commission-receiving bank accounts and verification of client payout requests.
During the inspection period, 161 of 343 active clients mapped to Lilhare showed a pattern of fixed payouts. These transactions involved client investments of ₹6.11 crore and payouts exceeding ₹1.84 crore. SEBI held that the identified deficiencies resulted in violations of applicable stock-broker regulations and market norms.
SMC Global Securities is a SEBI-registered stock broker and a member of BSE, NSE, MCX and NCDEX. CASansaar