SISwastika Investmart530585Regulatory penalty

SEBI imposes Rs. 10,00,000 penalty on merchant banking operations over SME IPO and takeover offer lapses

SEBI has imposed a monetary penalty of Rs. 10,00,000/- on the company in its merchant banker capacity.

By ScoutQuest · Thu 5 Nov 2026, 8:36 PM IST · 2 min read

Penalty Imposed

Rs. 10,00,000/-

Adjudication Order Date

04th November, 2026

Inspection Period Covered

01st April, 2023 to 31st March, 2025

What the order says

• SEBI has imposed a monetary penalty of Rs. 10,00,000/- (Rupees Ten Lakh Only) on the company under Section 15HB of the Securities and Exchange Board of India Act, 1992.
• The penalty was imposed vide Adjudication Order No. Order/AK/GN/2026-27/32850 dated 04th November, 2026, and the company received it on 05th November, 2026.
• The action is against the company in its capacity as a SEBI-registered Merchant Banker.

What was the inspection about

• SEBI inspected the company's Merchant Banking activities during the period from 08th July, 2025 to 11th July, 2025, covering 01st April, 2023 to 31st March, 2025.
• After considering the company's submissions and the material on record, the Adjudicating Officer established non-compliances primarily relating to SME IPO assignments, takeover offers handled by the company, and maintenance of records and compliance with disclosure requirements applicable to Merchant Bankers.

What the company says about the impact

• The company states the financial impact is limited to the monetary penalty of Rs. 10,00,000/-.
• It states there is no other material impact on the financial position, operations or other activities arising from the order.

What the company plans next

• The company is proposing to file an application for settlement under Regulation 3 of the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2026, in respect of the adjudication proceedings and the penalty imposed.

How a retail investor might read this

• This is a regulatory penalty disclosure, not an operational or financial performance update. The amount is quantified and stated by the company as the only financial impact.
• The finding concerns how the company carried out its merchant banking work, an area separate from its broking-facing activities, but the order names areas of weakness in processes and record-keeping.
• The proposed settlement application is a step the company says it intends to take; it is a proposal, and its outcome is not part of this disclosure.

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.

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