5paisa capital Limited has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding its association with certain algorithmic trading platforms. The company disclosed the settlement under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following a Settlement Order passed by the market regulator.

Settlement Details

SEBI has imposed a settlement amount of ₹1,00,000 on 5paisa Capital Limited under the Settlement Scheme for Association with Certain Algo Platforms, 2025. The order was dated March 17, 2026, and displayed on SEBI's website on March 18, 2026.

Nature of Violations

The settlement stems from SEBI's examination of Tradetron and other algorithmic trading platforms. During this investigation, certain stock-brokers were found to have their Application Programming Interfaces (APIs) integrated with such platforms. These platforms were observed to be displaying and marketing strategies that indicated assured or consistent returns to investors.

SEBI determined that such associations constituted alleged violations of:

• SEBI Circular dated September 02, 2022
• Provisions of the SEBI (Stock Brokers) Regulations, 1992

Financial Impact Assessment

5paisa Capital Limited has assessed that there is no material financial impact on the company beyond the payment of the settlement amount. The company has disclosed this information in compliance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Compliance Framework Strengthening

Following the settlement, 5paisa Capital Limited has emphasized its commitment to strengthening its compliance framework. The company stated that it remains dedicated to adhering to all applicable regulatory requirements moving forward. This settlement allows the company to resolve the matter without admitting or denying the alleged violations while focusing on enhanced regulatory compliance.

5paisa capital has received a GST order from Central Tax authorities involving a demand of ₹9.98 lakh including interests and penalties. The company disclosed this development under SEBI Listing Regulations on March 13, 2026, following receipt of the order dated March 12, 2026.

GST Order Details

The order was passed by the Office of the Superintendent of Central Tax, Range – ASD 5, South Division 5, Bengaluru-34, under the provisions of the Central Goods and Services Tax Act & Rules, 2017. The authority determined the demand for FY 2019-20 under CGST Rules, 2017.

Nature of Violations

The GST order relates to several alleged contraventions for FY 2019-20:

• Excess and ineligible Input Tax Credit (ITC) claims
• Declaration of incorrect tax liability
• Mismatch in tax records
• Issues under CGST Act, 2017, KGST Act, 2017, and IGST Act, 2017

The Deputy Commercial Tax Officer under the jurisdiction of Superintendent Of Central Tax Range-ASD5, South Division-5 Bengaluru South Commissionerate passed the order determining the demand, interest and penalty.

Company's Response and Next Steps

5paisa Capital has outlined its planned course of action in response to the GST order:

• The company intends to file an appeal against the order within prescribed statutory timelines
• Complete records and supporting documentation for all transactions have been maintained
• The company expresses confidence in substantiating its position before authorities
• Appropriate clarifications will be submitted to the tax authorities

Financial Impact Assessment

According to the company's disclosure, there is no material impact on the financial, operational or other activities at this stage. The company is currently in the process of evaluating the order and will take appropriate steps including filing an appeal within the prescribed timelines.

5paisa Capital remains committed to maintaining the highest standards of corporate governance and will continue making disclosures in compliance with SEBI Listing Regulations. The disclosure was made pursuant to SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026.