SEBI recently concluded two notable proceedings. It penalized SMC Global Securities for compliance lapses and cleared the Adani Group in a minimum public shareholding (MPS) case after a settlement. These actions continue a pattern of regulatory scrutiny from the market watchdog, a theme discussed in our August 17, 2026, coverage titled “SEBI’s Active Role: Regulatory Scrutiny and Market Oversight.”

Compliance Lapses Lead to Penalty for SMC Global Securities

SEBI found SMC Global Securities had not maintained appropriate pre-order placement records for certain clients. The regulator also noted the firm could not provide relevant records for multiple orders, according to The Hindu. This penalty reminds all market intermediaries, including those supporting burgeoning startups, to keep meticulous records and adhere to operational compliance standards. For fintech startups or those interacting with trading platforms, SEBI actively verifies and enforces internal controls and data trails as a fundamental regulatory requirement.

Adani Group Resolves MPS Allegations with Payment

In a separate development, SEBI concluded proceedings against Gautam Adani, four Adani Group entities, and 13 individuals regarding alleged violations of minimum public shareholding requirements. The parties resolved the proceedings by paying Rs 1.48 crore without accepting or contesting the conclusions, as reported by StartupTalky. This resolution method, where entities pay to settle proceedings without admission of guilt, is a recognized mechanism within SEBI’s enforcement framework. While different from a direct penalty for non-compliance, it still shows SEBI addressing potential market rule breaches. For startups contemplating initial public offerings (IPOs) or already listed, maintaining minimum public shareholding is essential for corporate governance and market integrity. This case shows SEBI continues to monitor such structural compliances.

Implications for Indian Startups and Tech Companies

These recent actions by SEBI demonstrate the regulator’s sustained market oversight, validating the assessment from our August 2026 report. SEBI expects strict adherence, whether dealing with operational record-keeping or broader shareholding norms. For Indian startups, particularly those in the fintech sector or those eyeing public markets, these developments mean specific actions.

First, the SMC Global Securities case shows internal compliance systems are essential. Startups dealing with financial data, transactions, or client orders must implement and meticulously follow record-keeping protocols. This builds trust and demonstrates operational integrity, which helps attract investors and achieve sustained growth. Early stage companies often focus on product development and market penetration, but neglecting regulatory hygiene can lead to significant setbacks later.

Second, the Adani Group resolution, while a settlement, confirms SEBI’s focus on foundational market structures like minimum public shareholding. For startups planning to go public, understanding and planning for MPS requirements from the outset is important. It influences share allocation strategies, promoter holdings, and overall corporate structuring. Any deviation can lead to prolonged regulatory scrutiny and potential financial costs.

SEBI’s approach shows active monitoring and enforcement are standard practice. The regulator uses a range of tools, from penalties for specific lapses to settlement mechanisms for complex issues, to ensure market participants operate within defined boundaries. Startups and tech companies must recognize that rapid innovation does not exempt them from fundamental regulatory requirements. A proactive approach to compliance will manage India’s evolving regulatory environment better than a reactive one.

What was SMC Global Securities penalized for?

SMC Global Securities was penalized by SEBI for failing to maintain appropriate pre-order placement records for certain clients and for not providing relevant records for multiple orders.

How was the Adani Group case resolved?

The Adani Group, along with Gautam Adani and 13 other individuals and entities, resolved proceedings for alleged minimum public shareholding violations by paying Rs 1.48 crore to SEBI without accepting or contesting the conclusions.

Compiled by Launch91 Desk from the sources linked above. More about Launch91.