Description
SEBI issues completion order for Recovery Certificate No. 7976 of 2024 against Raisuddin Enterprise (PAN: ACKPU8773A) in matter related to dealing in illiquid stock options at BSE.
Summary
SEBI has issued a completion order for Recovery Certificate No. 7976 of 2024 dated November 21, 2024, against Raisuddin Enterprise (PAN: ACKPU8773A) in connection with violations related to dealing in illiquid stock options at the Bombay Stock Exchange (BSE). This order confirms the completion of recovery proceedings against the entity for regulatory non-compliance.
Key Points
- Recovery Certificate No. 7976 of 2024 issued against Raisuddin Enterprise
- Case relates to dealing in illiquid stock options at BSE
- Entity identified by PAN: ACKPU8773A
- Completion order confirms conclusion of recovery proceedings
- Enforcement action taken under SEBI’s regulatory framework
Regulatory Changes
No new regulatory changes introduced. This order represents enforcement of existing regulations governing trading in illiquid stock options and market manipulation prevention.
Compliance Requirements
- Market participants must avoid engaging in trading practices involving illiquid stock options that violate SEBI regulations
- Entities subject to recovery certificates must comply with payment obligations
- Brokers and trading members should ensure client compliance with regulations on illiquid securities trading
- Enhanced due diligence required for transactions in illiquid stock options
Important Dates
- November 21, 2024: Recovery Certificate No. 7976 of 2024 issued
- November 13, 2025: Completion order published
Impact Assessment
Market Impact: Limited direct market impact as the action targets a specific entity for past violations. The order serves as a deterrent for similar regulatory violations.
Operational Impact: Entities engaged in options trading, particularly in illiquid securities, should review their compliance frameworks. The completion of recovery proceedings demonstrates SEBI’s commitment to enforcing penalties and recovering dues from violators.
Regulatory Significance: Reinforces SEBI’s enforcement mechanism for market manipulation and improper trading practices in derivatives markets, particularly concerning illiquid instruments where manipulation risks are higher.
Impact Justification
High severity enforcement action against specific entity for illiquid stock options trading violations. Low broader market impact as action targets single violator. Medium importance for regulatory compliance precedent.