Description

SEBI issues Notice of Demand under Certificate No. RC9045 of 2026 to Subhranshu Roy HUF (PAN: AAXHS8157D) for recovery of dues arising from the Illiquid Stock Options manipulation matter.

Summary

SEBI has issued Certificate No. RC9045 of 2026 — a formal Notice of Demand — against Subhranshu Roy HUF (PAN: AAXHS8157D) for recovery of outstanding dues in connection with the Illiquid Stock Options manipulation matter. This notice is part of SEBI’s ongoing recovery proceedings against entities found to have engaged in non-genuine trades in illiquid stock options on Indian exchanges.

Key Points

  • SEBI has issued Recovery Certificate No. RC9045 of 2026 against Subhranshu Roy HUF (PAN: AAXHS8157D)
  • The notice demands payment of penalty and/or disgorgement amounts previously directed by SEBI orders in the Illiquid Stock Options matter
  • The case relates to SEBI’s broad enforcement action targeting manipulation of illiquid stock options on NSE/BSE
  • Non-payment of the demanded amount may lead to further coercive recovery measures by SEBI
  • HUF entities, along with individuals and firms, were found involved in circular trading and artificial volume creation in stock options

Regulatory Changes

No new regulatory changes are introduced by this notice. It is an enforcement action implementing existing SEBI orders under:

  • SEBI Act, 1992
  • SEBI (Intermediaries) Regulations
  • Recovery of amounts through certificate proceedings under Section 28A of the SEBI Act, 1992

Compliance Requirements

  • Subhranshu Roy HUF is required to pay the outstanding demand amount as specified in the Recovery Certificate
  • Payment must be made within the stipulated time period mentioned in the notice
  • Failure to comply may result in attachment of assets or other coercive recovery actions by SEBI
  • The noticee may approach the appropriate forum for any legal remedy against the recovery proceedings

Important Dates

  • Certificate No. RC9045 issued: 2026
  • Notice of Demand date: February 23, 2026
  • Payment deadline: As specified in the notice (typically within 15–30 days of receipt)

Impact Assessment

This notice has limited broader market impact as it targets a specific HUF entity. However, it signals SEBI’s continued and active pursuit of recovery from all entities — including family/HUF structures — implicated in the Illiquid Stock Options manipulation case. The illiquid stock options matter has been one of SEBI’s largest enforcement campaigns, involving hundreds of entities across multiple years (primarily 2014–2018 trading period). Investors and market participants should note that SEBI continues to enforce payment of penalties and disgorgement amounts years after the original orders, demonstrating the long-term consequences of market manipulation.

Impact Justification

This is an individual enforcement/recovery action against a specific HUF entity in the ongoing illiquid stock options matter. It has high severity as a legal demand but low broader market impact since it targets a single non-institutional party.