SMC Global Securities received a penalty of ₹1,00,000 from the Securities and Exchange Board of India (SEBI) for violating stock broker regulations related to client record maintenance and supervision of authorized persons.

The Adjudication Order, dated October 1, 2026, cited failures to maintain pre-order placement records and inadequate oversight of an authorized person (AP) who allegedly offered assured returns to clients. The penalty was levied under Section 15HB of the SEBI Act, 1992.

Inspection findings and violations

The penalty stems from a thematic inspection conducted by SEBI covering the period from January 1, 2024, to September 30, 2024. The regulator identified two primary non-compliances:

1. Non-maintenance of records: The company failed to maintain appropriate evidence of client order placement for several clients, violating Regulation 9(b) of the Stock Brokers Regulations and SEBI Master Circulars.
2. Lack of supervision: The company failed to adequately supervise an AP, Amit Lilhare, who was found to be facilitating unauthorized trading and offering fixed returns. The AP operated in the Bhilai and Rajnandgaon regions of Chhattisgarh.

Scale of irregularities

The adjudicating officer noted that out of 343 active clients mapped to the AP, a pattern of fixed payouts was observed in the ledgers of 161 clients. The total amount invested by these clients during the inspection period was ₹6,11,27,000, while the total fixed payouts made by the trading member to these clients amounted to ₹1,84,59,000.

Company defense and regulatory response

SMC Global Securities argued that it had already disabled the AP’s terminal in May 2024 and filed a police complaint before the SEBI inspection. The company also contended that parallel proceedings initiated by the National Stock Exchange (NSE) on the same subject matter should invoke the doctrine of double jeopardy.

However, the Adjudicating Officer rejected this argument, stating that Article 20(2) of the Constitution applies only to criminal proceedings, not quasi-judicial regulatory actions. The officer further noted that NSE and SEBI operate under distinct statutory mandates and jurisdictions.

What the numbers show

A critical divergence exists between the company’s claim of robust internal controls and the scale of undetected irregularities. Despite conducting an internal inspection of the AP in February 2024, which resulted in only minor observations, the subsequent SEBI analysis revealed that fixed payouts had been occurring since July 2022. This indicates a significant lag in detecting systemic misconduct, as the company failed to monitor undisclosed bank accounts where commissions were routed, allowing the violation to persist for over two years before external intervention.

The company has been directed to remit the penalty within 45 days. Failure to do so may lead to recovery proceedings under Section 28A of the SEBI Act.

SMC Global Securities Limited has acquired a combined 26.68% equity stake in S.K. Offset Limited through a mix of IPO allotment and open market purchases. The acquisition, completed in late September 2026, positions the securities firm as a significant shareholder in the printing and packaging company following its listing on the BSE SME platform.

The transaction involves two entities: SMC Global Securities and its wholly owned subsidiary, Moneywise Financial Services Private Limited. Together, they hold 20,66,000 equity shares of S.K. Offset Limited. The move was necessitated by SMC Global’s role as the Market Maker for the target company’s Initial Public Offering (IPO).

Acquisition Structure and Holdings

SMC Global Securities acquired 11,05,000 equity shares, representing 14.27% of the total equity share capital. This holding comprises 1,20,000 shares allotted under the Market Maker Reservation Portion during the IPO and 9,85,000 shares purchased in the open market on September 30, 2026.

Moneywise Financial Services Private Limited, acting as a Person Acting in Concert (PAC), holds 9,61,000 equity shares, amounting to 12.41% of the capital. These shares were allotted entirely during the IPO phase, split between the Anchor Investor portion (4,20,000 shares) and the Qualified Institutional Buyer (QIB) portion (5,41,000 shares).

Financial Details of the Transaction

The acquisition was executed for cash consideration. The shares allotted in the IPO were priced at the issue price of ₹125 per equity share. The open market purchase by SMC Global Securities was conducted at an average price of ₹125.99 per equity share.

The total cost for the IPO-allotted shares across both entities amounts to ₹13.51 crore, while the open market purchase cost approximately ₹12.41 crore based on the disclosed average price. No governmental or regulatory approvals were required prior to the acquisition, as it falls under standard disclosure requirements under SEBI regulations.

Target Company Profile

S.K. Offset Limited is engaged in integrated printing, packaging, and labelling solutions. Based in Meerut, Uttar Pradesh, the company offers services ranging from offset printing to digital design for packaging artwork. Its product portfolio includes books, textbooks, brochures, catalogues, stationery, cartons, boxes, stickers, and labels.

The company listed its equity shares on the BSE SME Platform on September 30, 2026, following an IPO of 23,25,000 equity shares at ₹125 per share. Prior to this listing, S.K. Offset Limited reported robust growth in its top line over the last three financial years.

What the Numbers Show

The data reveals a significant concentration of ownership immediately post-listing. While SMC Global Securities acted as the Market Maker, the combined stake of 26.68% held by the firm and its subsidiary places them well above the 5% threshold that triggers substantial acquisition disclosures under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Furthermore, the target company’s revenue trajectory shows strong momentum. Total income rose from ₹23.31 crore in FY24 to ₹48.65 crore in FY25, and further to ₹67.00 crore in FY26. This represents a near-tripling of turnover over two years, suggesting the market maker’s commitment to liquidity may be supported by fundamental growth in the underlying business.