SEBI levies penalty of Rupees 1,00,000/- in adjudication order over client order records, AP supervision

The company has informed the exchanges that SEBI has issued Adjudication Order No. Order/AK/GN/2026-27/32758 and levied a penalty of Rupees 1,00,000/-.

Sat 3 Oct 2026

Penalty levied by SEBI

Rupees 1,00,000/-

Adjudication Order No.

Order/AK/GN/2026-27/32758

Inspection period

January 01, 2024 to September 30, 2024

Clients registered with AP - Amit Lillhare

around 581

AP turnover (Rs. in Crores)

15,414.60 in 2021-2022, 80,030.56 in 2022-2023, 93,016.49 in 2023-2024, 1,213.86 from April 2024 to 31.05.2024

What was disclosed

The company informed the exchanges that SEBI has issued Adjudication Order No. Order/AK/GN/2026-27/32758 and levied a penalty of Rupees 1,00,000/-.

Where the order comes from

SEBI conducted a thematic inspection on the theme of "Verification of Unauthorized trading complaints and client order placement" of the company for the period from January 01, 2024 to September 30, 2024. Based on the inspection findings and the reply dated April 16, 2025 received from the company, certain alleged non-compliances of the SEBI (Stock Brokers) Regulations, 1992 and circulars issued by SEBI and NSE were observed. An Adjudicating Officer was appointed vide communique dated July 01, 2025.

The allegations

• During inspection it was observed that the company did not maintain records relating to client order placement.
• It was also observed that there was a lack of supervision of Authorized Persons (APs) by the company.

A Show Cause Notice dated July 30, 2025 was issued. The company shared an application for settlement under the SEBI (Settlement Proceedings) Regulations, 2018, and withdrew that application vide letter dated February 23, 2026. A hearing was thereafter granted on April 02, 2026.

What the company submitted

• It said NSE has also initiated proceedings on the same subject matter and that parallel proceedings would amount to multiplicity of proceedings and double jeopardy; it referred to judgements including Green v. United States, Vital Communications Ltd. Vs. SEBI and M. Nagabhushana v. State of Karnataka.
• On AP - Amit Lillhare: he was registered with it as an AP on 28.01.2011 (NSE) and 08.09.2015 (BSE), and had around 581 clients registered with him. His turnover, in Rs. In Crores as per the table, was 15,414.60 in 2021-2022, 80,030.56 in 2022-2023, 93,016.49 in 2023-2024 and 1,213.86 from April 2024 to 31.05.2024 (Disablement of Terminal).
• After irregularities were observed in May 2024, the company disabled the AP's trading terminal on 31.05.2024, issued a Notice of Dissociation to him on 15.07.2024 and shared a police complaint (shared physically on 22.07.2024).
• The company denied any scheme of fixed or assured returns, and said it had sent mails and SMS to clients stating that it does not offer schemes assuring unreasonably high returns or guaranteed returns in equity and derivative markets, and does not accept or pay cash to or from clients.
• It submitted that the alleged commission-related transactions were in the AP's bank accounts with Kotak Mahindra Bank and State Bank of India, which were never disclosed to it, and that not a single alleged rupee was credited in the company's bank account.
• It submitted that post inspection it reviewed its operations and took remedial and corrective measures where required, and that alleged lapses, if any, occurred unintentionally and were merely technical in nature.

Numbers in the update

• Penalty levied by SEBI: Rupees 1,00,000/-
• Clients registered with AP - Amit Lillhare: around 581
• Turnover of AP - Amit Lillhare, in Rs. In Crores as printed in the table: 15,414.60, 80,030.56, 93,016.49 and 1,213.86

How to read this

This is a regulatory order carrying a monetary penalty, with the alleged lapses relating to client order records and supervision of Authorized Persons. The company has, in its submissions, denied the violations and pointed to the steps it took on detecting irregularities. Investors may track it as a compliance-related development.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.