The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against two individuals in connection with an illiquid stock options case. Through Recovery Certificate No. 9147 of 2026 , issued by SEBI's Eastern Regional Office, the market regulator has demanded payment of Rs 5.31 lakh, comprising penalty, accrued interest, and recovery expenses.
The recovery action has been taken under Section 28A of the SEBI Act, 1992, read with relevant provisions of the Income-tax Act, 1961.
Breakdown of Amount Recoverable
According to the notice, the total outstanding amount payable to SEBI stands at Rs 5,31,000. The amount includes:
- Penalty imposed by SEBI's Adjudicating Officer: Rs 5,00,000
- Interest calculated from January 14, 2026, to June 9, 2026, at 1% per month: Rs 30,000
- Recovery costs: Rs 1,000
The penalty arises from an adjudication order dated January 14, 2026, passed against Amar Nath Das and Rajesh Kumar Agarwal jointly and severally in the matter relating to illiquid stock options.
Payment Required Within 15 Days
SEBI has directed the noticees to clear the outstanding dues within 15 days of receiving the notice. Payments may be made through EFT, NEFT, RTGS, or the online recovery payment facility available through SEBI's portal.
The regulator stated that failure to pay the amount within the stipulated timeline could trigger coercive recovery measures under the law.
SEBI Warns of Recovery Actions
The recovery notice outlines several enforcement measures that may be adopted in the event of non-payment. These include:
- Attachment and sale of movable property
- Attachment of bank accounts
- Attachment and sale of immovable assets
- Arrest and detention in prison
- Appointment of a receiver for the management of assets
Such actions are available to SEBI under statutory recovery provisions to ensure the collection of dues arising from regulatory proceedings.
Restrictions on Property Transfers
The notice further cautions the concerned individuals against transferring or disposing of assets without authorization. SEBI has highlighted that certain transfers of property or funds made after the date of the underlying order may be deemed recoverable assets for the purpose of enforcement proceedings.
Additionally, any transfer, mortgage, lease, or charge created over property after service of the recovery notice may be treated as void unless permitted by the Recovery Officer.
Growing Regulatory Focus on Market Violations
The latest recovery action reflects SEBI's continued efforts to enforce penalties imposed in market manipulation and securities law violation cases. Illiquid stock options matters have remained an area of regulatory scrutiny due to concerns over artificial trading practices and misuse of derivatives segments.
With recovery proceedings now initiated, the noticees are required to comply with the payment demand or face further enforcement measures under the SEBI Act and allied recovery provisions.
Click here to view the official copy of the notification
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