5paisa capital has issued a formal clarification to stock exchanges regarding the significant increase in trading volume of its equity shares, attributing the movement entirely to market-driven factors beyond the company's control.

Exchange Communication Details

The clarification was issued on December 26, 2025, in response to an exchange inquiry seeking explanation for the notable surge in trading activity. The communication was signed by Company Secretary and Compliance Officer Charvi Panchmatia.

Company's Position on Volume Movement

The management clearly stated that the movement in share volumes is purely due to market conditions and market-driven factors. The company emphasized that management neither has control over nor possesses knowledge of specific reasons behind the volume surge in its securities.

This response indicates that the trading activity was not influenced by any undisclosed material information or corporate developments from the company's side.

Regulatory Compliance Commitment

The company reaffirmed its commitment to regulatory transparency and compliance. 5paisa Capital stated that it has made and will continue to make necessary disclosures in compliance with obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The firm requested exchanges to take the clarification on record, demonstrating proactive communication with regulatory authorities regarding unusual market activity in its shares.

5paisa Capital Limited has received a Goods and Services Tax (GST) order from tax authorities demanding ₹52.10 lakh for alleged excess Input Tax Credit (ITC) claims. The company disclosed this development to stock exchanges on December 17, 2025, in compliance with SEBI listing regulations.

GST Order Details

The Assistant Commissioner of Central Tax, Range ASD-5, South Division-5, Central Tax, Bengaluru South Commissionerate issued the order on December 16, 2025. The order was passed under applicable provisions of the Central Goods and Service Tax Act, 2017, the Karnataka Goods and Service Tax Act, 2017, and the Integrated Goods and Service Tax Act, 2017.

Nature of Alleged Violations

The tax authority has alleged excess and ineligible availment of Input Tax Credit by 5paisa Capital. The specific violations include:

• Mismatch between returns filed and ITC claimed
• Certain expenses treated as blocked credits under the CGST Act, 2017
• Alleged ineligible Input Tax Credit claims during the assessment period

The demand of ₹52.10 lakh includes the principal amount along with applicable interest and penalties as per GST provisions.

Company's Response and Action Plan

5paisa Capital has announced its intention to challenge the GST order through proper legal channels. The company's response strategy includes:

• Filing an appeal against the order within prescribed statutory timelines
• Submitting appropriate clarifications and supporting documentation to authorities
• Maintaining complete records for all transactions during the disputed period

Based on legal advice, the company expressed confidence in substantiating its position before the appellate authorities. 5paisa Capital believes it maintains proper documentation for all transactions and expects to receive relief from the authorities.

Financial and Operational Impact

The company has assessed the current impact of the GST order on its operations. According to the disclosure, there is no material impact on the financial, operational, or other activities of 5paisa Capital at this stage. The company continues to evaluate the order and will take appropriate steps as the appeal process progresses.

5paisa Capital has committed to keeping stock exchanges informed of any material developments in this matter. The company reiterated its commitment to the highest standards of corporate governance and compliance with SEBI listing regulations.