Anand Rathi Share and Stock Brokers Limited has disclosed to stock exchanges that a First Information Report (FIR) has been registered by Pune Police in connection with fraudulent off-market share transfers worth approximately Rs 13 crore. The development marks a significant escalation in the company's efforts to address the fraud that was initially reported in February 2026.

FIR Registration Details

The Deccan Police Station in Pune registered the FIR on March 16, 2026 at 08:41 P.M., following initial complaints filed by the company with Pune Police station and N.M. Joshi Police Station. The company had first intimated the exchanges about this matter on February 06, 2026, when the off-market transfer of shares was initially discovered.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Chief Financial Officer Tarak Kumarpal Shah signed the disclosure document, emphasizing the company's commitment to transparency and regulatory compliance. The information has also been uploaded on the company's investor website at anandrathi.com/investors.

Investigation Status and Corrective Measures

The estimated impact on the listed entity is to the extent of the amount involved, approximately Rs 13 crore. While investigations are currently underway to determine the persons involved in the fraudulent activity, the company has stated that necessary corrective actions have been identified and are at various stages of implementation.

The company has committed to providing further updates on the matter as developments occur, in accordance with the provisions of listing regulations. This ongoing case highlights the importance of robust internal controls and monitoring systems in the financial services sector.

Anand Rathi Share and Stock Brokers Limited has formally disclosed receiving a penalty order from the Securities and Exchange Board of India (SEBI) dated March 13, 2026. The market regulator has imposed a consolidated monetary penalty of ₹10,00,000 on the brokerage firm for various cybersecurity and compliance violations identified during a regulatory inspection.

Penalty Details and Communication

The penalty order was issued by SEBI's Adjudicating Officer following an inspection conducted for the period from April 01, 2023 to August 31, 2024. The company received the SEBI communication on March 13, 2026 at 4:26 p.m. through email, as disclosed under Regulation 30 of the listing regulations.

Scope of Cybersecurity Violations

The penalty covers multiple critical areas of cybersecurity and operational compliance that were found deficient during the regulatory inspection. The violations relate to non-compliance with the Cyber Security & Cyber Resilience Framework, SEBI (Stock Brokers) Regulations, 1992, and applicable SEBI circulars.

Key violation areas include:

• Infrastructure Planning: Capacity planning and system architecture
• Business Continuity: Business Continuity Planning (BCP) and Disaster Recovery Site (DRS) policy
• Access Controls: Password policy, privileged access management, and PowerShell access controls
• Security Measures: Data leakage prevention, API security, and network security protocols
• Risk Assessment: Vulnerability Assessment and Penetration Testing (VAPT)
• Operational Compliance: Incident reporting, monitoring and detection systems
• Client Management: KYC validation of clients

Regulatory Compliance and Action

As per the penalty order, the company must pay the imposed fine of ₹10,00,000 within 45 days of receiving the order. The penalty amount will be debited directly from the company's settlement account. The disclosure was made by Company Secretary and Compliance Officer Chetan Prajapati under his membership number A39130.

Stock Exchange Communication

The company has formally informed both BSE Limited and National Stock Exchange of India about the penalty order as required under the listing regulations. The firm trades under scrip code 544530 on BSE and symbol ARSSBL on NSE. The disclosure was made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI Listing Regulations.

This penalty highlights the increasing regulatory focus on cybersecurity compliance in the financial services sector, particularly for stock brokers handling sensitive client data and financial transactions.