5paisa Capital Limited has closed its trading window for all designated persons, including directors and promoters, effective from June 15, 2026. This measure is intended to prevent insider trading ahead of a board meeting scheduled to discuss the issuance of equity shares through preferential allotment cum private placement. The window will remain closed until the expiry of 48 hours after the board concludes its deliberations.

The decision to shut the trading window aligns with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, and the company's internal Code of Conduct to Regulate, Monitor and Report Trading by Insiders. Designated persons and their immediate relatives are prohibited from trading in the company's securities during this period.

The upcoming board meeting will focus on the proposal for the issuance of equity shares via preferential allotment cum private placement and other related matters. The closure ensures compliance with regulatory standards by restricting trading activities when unpublished price-sensitive information may be under consideration.

Key Details

The company has formally notified the stock exchanges, BSE Limited and The National Stock Exchange of India Limited, regarding the closure. Gourav Munjal, Whole-time Director & CFO, signed the disclosure on behalf of 5paisa Capital Limited.

5paisa capital received a Show Cause Notice from the Securities and Exchange Board of India (SEBI) regarding the expiry of its Investment Adviser registration certificate, potentially impacting its ability to operate in that capacity. The notice, received on June 05, 2026, alleges that the company failed to pay the prescribed fees necessary to maintain the registration, which consequently expired. SEBI has sought a response as to why the certificate of registration should not be cancelled or suspended under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, read with Section 12(3) of the SEBI Act, 1992.

The regulatory action stems from an alleged violation of Clause 3 of the Second Schedule of the SEBI (Investment Advisers) Regulations, 2013. This clause mandates that an Investment Adviser must pay the prescribed fees every five years from the date of grant of the certificate, within three months before the expiry of the period for which the fees have been paid. SEBI stated that the company ceased to satisfy the conditions of registration stipulated under Regulation 13(a) read with Clause 3 of the Second Schedule due to this non-payment.

Details of the Show Cause Notice

The disclosure was made to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The filing provided specific details regarding the nature of the action and the alleged contraventions.

The company stated that the financial or operational impact of the notice cannot be quantified at this stage, as it depends entirely on the outcome of the proceedings. 5paisa Capital Limited confirmed that it will promptly respond to the show cause notice and inform the stock exchanges of any material developments. The company emphasized its commitment to adhering to corporate governance standards and complying with SEBI Listing Regulations.