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.

5paisa Capital Limited has officially completed the postal ballot process for appointing Mr. Zor Gorelov as Non-Executive Independent Director, with the company submitting the scrutinizer's report to stock exchanges on December 16, 2025. The special resolution received unanimous shareholder support through the e-voting process conducted by Central Depository Services (India) Limited (CDSL).

Official Completion and Regulatory Filing

The company formally notified BSE and NSE about the successful completion of the postal ballot process under Regulation 44 of SEBI Listing Regulations. The scrutinizer's report was submitted by Company Secretary Charvi Panchmatia, confirming compliance with all regulatory requirements.

Postal Ballot Results

The voting results, certified by scrutinizer M/s. Shah Patel Associates, demonstrate complete shareholder consensus for the appointment:

Scrutinizer Certification Process

Mr. Swapneel Vinod Patel from M/s. Shah Patel Associates served as the appointed scrutinizer, ensuring fair and transparent conduct of the postal ballot process. The scrutinizer confirmed compliance with Companies Act 2013 provisions and SEBI regulations.

Director Appointment Details

Professional Background and Committee Roles

Mr. Gorelov brings over 25 years of technology industry experience, currently serving as Senior Advisor at Klaros focusing on AI strategy in banking and fintech. He previously founded Kasisto, a leading AI-powered digital assistant provider for banking, and co-founded SpeechCycle, which was acquired by Synchronoss Technologies.

Upon appointment, Mr. Gorelov will serve as a member of the Independent Directors Committee and Information Technology Committee, strengthening the company's technological governance framework. The voting results and scrutinizer's report are available on the company's website and CDSL's e-voting platform for shareholder reference.