Description

SEBI issues recovery certificate demanding Rs. 5,36,000 from Mrinal Verma for penalty imposed in connection with dealing in illiquid stock options at BSE.

Summary

SEBI has issued Recovery Certificate No. 8888 of 2025 to Mrinal Verma (PAN: ADDPV0274F) demanding payment of Rs. 5,36,000 for penalty imposed in connection with dealing in illiquid stock options at BSE. The penalty was originally imposed through Order No. Order/AS/VC/2024-25/31278 dated March 19, 2025, with additional interest and recovery costs.

Key Points

  • Original penalty amount: Rs. 5,00,000 imposed for dealing in illiquid stock options at BSE
  • Interest accrued: Rs. 35,000 (March 2025 to September 2025 at 1% per month)
  • Recovery costs: Rs. 1,000
  • Total amount due: Rs. 5,36,000
  • Payment deadline: 15 days from receipt of notice
  • Recovery action initiated under Section 28A of SEBI Act, 1992

Regulatory Changes

No new regulatory changes introduced. This is an enforcement action under existing provisions of SEBI Act, 1992 and Income-tax Act, 1961 for recovery of penalties.

Compliance Requirements

  • Defaulter must pay Rs. 5,36,000 within 15 days of receipt
  • Payment methods available: Direct credit via EFT/NEFT/RTGS, online payment through SEBI portal, or payment link on SEBI website
  • Any property transfers to family members after March 19, 2025 without adequate consideration will be deemed void
  • Defaulter cannot mortgage, charge, lease or deal with property without Recovery Officer’s permission

Important Dates

  • March 19, 2025: Original penalty order issued
  • September 2, 2025: Recovery certificate issued
  • Within 15 days of receipt: Payment deadline
  • March 2025 to September 2025: Interest calculation period

Impact Assessment

This is an individual enforcement action with minimal direct market impact. It demonstrates SEBI’s continued focus on enforcing regulations against illiquid stock options trading violations at BSE. The recovery proceedings highlight SEBI’s powers including attachment of movable/immovable property, bank accounts, arrest and detention, and appointment of receivers for non-compliance. This serves as a deterrent for market participants engaged in manipulative trading practices in illiquid options.

Impact Justification

Individual enforcement action with limited market impact but demonstrates regulatory enforcement on illiquid options trading violations