SMC Global Securities Limited's wholly owned subsidiary, Pulin Comtrade Limited , has settled a long-pending Securities and Exchange Board of India (SEBI) investigation regarding its involvement in the National Spot Exchange Limited (NSEL) scandal. The regulator accepted a settlement application filed under the NSEL Settlement Scheme 2025, bringing closure to proceedings initiated after the Forward Markets Commission merged with SEBI in 2015.

The settlement involves a monetary payment of ₹9,10,780 and a non-monetary penalty of six months of voluntary debarment. During this period, Pulin Comtrade is barred from trading in its proprietary capacity and from taking up new clients in the commodity segment. The parent company disclosed receipt of the settlement order on September 11, 2026.

Regulatory Background

The probe stems from violations related to paired contracts traded on the NSEL platform between 2009 and 2013. The Forward Markets Commission (FMC), which administered the Forward Contracts (Regulation) Act, 1952, identified that 55 contracts on NSEL violated regulatory provisions, including prohibitions on short sales by exchange members. After the FMC merged with SEBI in 2015, the securities regulator initiated enquiry proceedings against 302 stock brokers for facilitating these transactions.

Of the 302 entities investigated, SEBI passed orders with directions against 161 brokers. The remaining cases were either disposed of without directions or recommended for no action by the Designated Authority. Following an order by the Securities Appellate Tribunal (SAT) in December 2023 directing SEBI to frame a settlement scheme, the regulator launched the NSEL Settlement Scheme 2025.

Settlement Details

Under the scheme, which ran from August 25, 2025, to February 25, 2026, 91 entities availed the benefit by remitting specified amounts. Pulin Comtrade, formerly known as SMC Comtrade Limited, was among these applicants. The settlement order, issued on September 9, 2026, by Whole Time Members Sandip Pradhan and K.V.R. Murty, settles the proceedings qua the applicant without prejudice to SEBI's right to initiate action if any representation is found untrue or if undertakings are breached.

What the Numbers Show

The settlement amount of ₹9,10,780 places Pulin Comtrade in the mid-range of penalties imposed under the scheme. Among the 91 settling entities, amounts ranged from ₹600,000 to over ₹5 million. For context, Purvag Commodities And Derivatives Private Limited paid the highest disclosed amount of ₹5,19,16,86, while several others paid the minimum threshold of ₹600,000. The uniform six-month debarment for proprietary trading suggests a standardized approach by SEBI for entities with similar violation profiles, distinguishing them from those who faced only monetary penalties or shorter debarment periods.

SMC Global Securities stated that the impact on its financial, operational, or other activities is negligible. The company has updated its website with the intimation as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

SMC Global Securities Limited has completed the full redemption of its Series I and Series II 10% Non-Convertible Debentures (NCDs) on August 7, 2026, marking the successful closure of these debt instruments at maturity. The redemption clears a total liability of ₹33.51 crore, comprising ₹26.71 crore for Series I and ₹6.80 crore for Series II, with no outstanding balance remaining for these specific tranches.

The move aligns with the terms outlined in the prospectus dated July 11, 2024. The company executed the redemption as per the scheduled maturity dates, ensuring timely payment to debenture holders. The last interest payment was also processed on August 7, 2026, coinciding with the principal repayment. This action reduces the company’s outstanding debt load and reflects adherence to its financial commitments.

Redemption Details

The redemption involved two distinct series of secured, rated, and listed NCDs. Both series carried a coupon rate of 10% and had a face value of ₹1,000 per unit. The full redemption was processed without any partial buybacks or conversions.

The company notified both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) regarding the completion of the redemption. The intimation was signed by Suman Kumar, Executive Vice President (Corporate Affairs & Legal), Company Secretary & General Counsel, confirming the procedural compliance with exchange regulations.

What the Numbers Show

The complete clearance of these NCD obligations indicates a disciplined approach to debt management. By redeeming the instruments exactly at maturity rather than through premature call options or put options, SMC Global Securities likely optimized its cash flow timing. The absence of any outstanding amount post-redemption suggests that the company has effectively retired this portion of its capital structure, potentially improving its leverage ratios or freeing up capacity for future financing needs if required. The simultaneous processing of the final interest payment and principal redemption streamlines the settlement process for investors.