SMC Global Securities has opened its public issue of non-convertible debentures (NCDs) on October 5, 2026. The base issue size is ₹750 crore, with an option to retain oversubscription up to the same amount, aggregating the total limit to ₹1,500 crore.

The debentures have been rated 'ICRA A Stable' by ICRA Limited. The subscription window remains open until October 16, 2026. Investors can apply through the ASBA mechanism, with UPI now available for retail bids up to ₹2 lakh.

Issue details and credit rating

The public offer comprises secured, rated, listed, redeemable NCDs with a face value of ₹1,000 each. The credit rating of 'ICRA A Stable' indicates an adequate degree of safety regarding timely servicing of financial obligations and low credit risk. The rating is valid for the life of the instrument unless withdrawn or reviewed by the agency.

Coupon rates and tenor options

The issue offers six series of NCDs with varying interest payment frequencies and tenors. The coupon rates range from 9.50% to 10.00% per annum for eligible investor categories. Series V offers monthly interest payments, while others provide annual or cumulative options.

Note: Coupons apply to Categories I, II, III, and IV. Minimum application is ₹10,000 (10 NCDs).

Subscription window and listing

Applications will be accepted from October 5, 2026, to October 16, 2026, during working hours from 10:00 am to 5:00 pm. On the closing date, applications will be accepted only until 3:00 pm. The NCDs are proposed to be listed on the BSE, which has granted in-principle approval for the listing. Corporate Professionals Capital Private Limited serves as the lead manager, while MUFG Intime India Private Limited acts as the registrar to the issue.

What the Numbers Show

The filing clarifies the structure of the previously announced board approval. While the board initially approved an aggregate size of up to ₹150 crore (likely referring to a specific tranche or initial proposal), the prospectus reveals a significantly larger base issue of ₹750 crore with a potential total demand absorption capacity of ₹1,500 crore through the green shoe option. This indicates a substantial capital raising effort compared to the earlier limited disclosure.

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.