Description

SEBI issues notice of demand under Recovery Certificate No. RC9042 of 2026 against Faithful Cloth Merchants Pvt. Ltd. (PAN: AABCF6670P) in connection with the illiquid stock options matter.

Summary

SEBI has issued a Notice of Demand under Recovery Certificate No. RC9042 of 2026 against Faithful Cloth Merchants Pvt. Ltd. (PAN: AABCF6670P) in relation to irregularities involving illiquid stock options. This represents an enforcement action for recovery of dues determined in the matter of dealings in illiquid stock options.

Key Points

  • Recovery Certificate Number: RC9042 of 2026
  • Party Name: Faithful Cloth Merchants Pvt. Ltd.
  • PAN: AABCF6670P
  • Matter: Illiquid Stock Options
  • Document Type: Notice of Demand
  • Issued by: Securities and Exchange Board of India

Regulatory Changes

No new regulatory changes. This is an enforcement action under SEBI’s existing recovery framework for collection of dues from parties found to have engaged in illiquid stock options manipulation.

Compliance Requirements

Faithful Cloth Merchants Pvt. Ltd. is required to comply with the demand notice and pay the amounts specified in the recovery certificate within the stipulated timeline to avoid further recovery proceedings, including attachment of bank accounts, demat accounts, and other assets.

Important Dates

  • Notice Issue Date: February 18, 2026
  • Payment deadline and other specific dates are mentioned in the detailed notice document

Impact Assessment

This is an individual enforcement action with no direct market-wide impact. It reflects SEBI’s continued and systematic pursuit of recovery against entities involved in illiquid stock options manipulation cases. The action serves as a deterrent for market participants engaging in similar manipulative trading activities and demonstrates SEBI’s commitment to enforcing penalties and recovering dues.

Impact Justification

High severity enforcement action targeting a specific entity for illiquid stock options violations; low market-wide impact as it concerns recovery proceedings against a single party.