SEBI imposed a ₹10 lakh penalty on merchant banker Swastika Investmart for multiple due diligence failures across seven SME IPOs and one takeover offer.
Violations included inadequate verification of director qualifications, site visit documentation, risk factor disclosures, and non-compliance with PIT regulations.
The adjudication order followed a SEBI inspection covering April 2023 to March 2025, revealing systemic deficiencies in the merchant banker's processes.
Swastika admitted to most observations but claimed clerical errors and implemented corrective measures post-inspection.