Description

SEBI releases attachment on bank, demat and mutual fund accounts after full recovery of Rs. 5,21,000 penalty in illiquid stock options matter.

Summary

SEBI’s Eastern Regional Office has issued a release order dated July 24, 2025, directing all banks, mutual funds, NSDL and CDSL to release the attached accounts of Mamata Bhiwaniwala (PAN: ADGPB7704B). This follows the full recovery of Rs. 5,21,000 penalty imposed for illiquid stock options violations, including interest and costs, against Recovery Certificate No. 8791 of 2025.

Key Points

  • Recovery Certificate No. 8791 of 2025 was issued on June 16, 2025 for Rs. 5,21,000
  • Original penalty imposed by Adjudicating Officer vide Order No. Order/AS/DPD/2024-25/31783 dated March 20, 2025
  • Notice of Attachment was issued on July 7, 2025 attaching bank and demat accounts
  • SEBI has recovered the entire amount due including interest and costs
  • Full and final settlement achieved against the defaulter

Regulatory Changes

No regulatory changes introduced. This is an administrative order related to enforcement proceedings.

Compliance Requirements

  • All banks in India must release any attached bank accounts/lockers of Mamata Bhiwaniwala
  • All mutual funds in India must release any attached mutual fund accounts
  • NSDL and CDSL must release any attached demat accounts
  • Release to be effected pursuant to the attachment notice dated July 7, 2025

Important Dates

  • March 20, 2025: Original penalty order issued
  • June 16, 2025: Recovery Certificate No. 8791 of 2025 drawn up
  • July 7, 2025: Notice of Attachment issued
  • July 24, 2025: Release Order issued after full recovery

Impact Assessment

This is a routine administrative matter with minimal market impact. The order concludes an individual enforcement case involving illiquid stock options violations. The successful recovery demonstrates SEBI’s enforcement capabilities, but the case involves a single individual and relatively modest penalty amount, limiting broader market implications.

Impact Justification

Administrative order releasing attachments after penalty recovery - limited market impact as it pertains to individual enforcement case resolution