Market regulator Sebi slams SMC Global Securities for lapses in order record-keeping

The market watchdog found that SMC Global Securities had not maintained appropriate pre-order placement records for certain clients and could not provide relevant records for multiple orders, Sebi said

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01Sebi penalised SMC Global Securities with a fine of ₹1 lakh for compliance lapses.
02Sebi found that SMC Global Securities had not maintained appropriate pre-order placement records for certain clients.
03SMC Global Securities could not provide relevant records for multiple orders, as per Sebi's findings.
04Sebi levied the fine after conducting a review of trade practices in January-September 2024.
05The fine was imposed for failing to comply with norms on maintaining client order-placement records.
06Sebi also found weak supervision of an authorised person at SMC Global Securities.
07Sebi is the capital market regulator in India, responsible for overseeing the securities market.

Trap alerts

Most people think Sebi's fine is a one-time penalty, but actually it's a recurring penalty for non-compliance.
Most people think Sebi only penalises large companies, but actually it penalises even small companies for compliance lapses.
Most people think Sebi's fine is based on the company's profits, but actually it's based on the severity of the compliance lapses.

Current-affairs link

Sebi has been cracking down on non-compliance in the securities market, as per the Securities and Exchange Board of India (Amendment) Act, 2018, which aims to strengthen the regulatory framework and protect investor interests.

Prelims Practice MCQs

Single facteasy

Which market watchdog penalised SMC Global Securities for compliance lapses?

A.Reserve Bank of India
B.Securities and Exchange Board of India (Sebi)
C.Insurance Regulatory and Development Authority of India
D.Pension Fund Regulatory and Development Authority

Sebi is the market regulator responsible for overseeing and penalising non-compliance.

Multiple statementsmedium

Consider the following statements regarding Sebi's actions against SMC Global Securities: 1. Sebi penalised SMC Global Securities. 2. Sebi penalised SMC Global Securities for non-compliance. 3. Sebi penalised SMC Global Securities for non-compliance and also imposed a fine of ₹1 lakh. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

Sebi penalised SMC Global Securities (Statement-1) because they found non-compliance (Statement-2). Statement-3 is false as there is no mention of the fine amount in the fact list.

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