Description
SEBI has issued Recovery Certificate No. RC9042 of 2026 under Appeal Proceedings Nos. 15275 & 15276 of 2026 against Faithful Cloth Merchants Pvt. Ltd. (PAN: AABCF6670P) for recovery of dues in the illiquid stock options enforcement matter.
Summary
SEBI has issued Recovery Certificate No. RC9042 of 2026 in connection with Appeal Proceedings (A.P.) Nos. 15275 & 15276 of 2026 against Faithful Cloth Merchants Pvt. Ltd. (PAN: AABCF6670P). This certificate authorises recovery of outstanding dues arising from SEBI’s enforcement action in the matter of illiquid stock options traded on BSE.
Key Points
- Recovery Certificate No. RC9042 of 2026 issued by SEBI on April 10, 2026
- Pertains to Appeal Proceedings Nos. 15275 & 15276 of 2026
- Entity: Faithful Cloth Merchants Pvt. Ltd. (PAN: AABCF6670P)
- Matter relates to illiquid stock options — a major SEBI enforcement campaign against entities engaged in manipulation of illiquid stock options on BSE
- Certificate enables SEBI to use statutory recovery mechanisms under the SEBI Act, 1992
Regulatory Changes
No new regulatory changes. This is an enforcement/recovery action under existing SEBI provisions for recovery of dues following adjudication proceedings.
Compliance Requirements
- Faithful Cloth Merchants Pvt. Ltd. is required to pay the outstanding penalty/dues as specified in the recovery certificate
- Failure to comply may result in attachment of assets, bank accounts, or other recovery measures under the SEBI (Recovery of Amount) Rules
- The company’s directors and officers may be individually liable under applicable provisions
Important Dates
- Certificate Date: April 10, 2026
- A.P. Nos. 15275 & 15276 of 2026 (proceedings date to be confirmed from certificate)
Impact Assessment
This recovery certificate has no broader market impact. It is an individual enforcement action against a single private entity (Faithful Cloth Merchants Pvt. Ltd.) as part of SEBI’s ongoing campaign to enforce penalties imposed in the illiquid stock options matter. The illiquid stock options enforcement programme has resulted in hundreds of such recovery certificates against entities that participated in circular trading or manipulation of illiquid stock options on BSE. General investors and markets are not affected.
Impact Justification
Recovery certificate against a single private company for illiquid stock options violations; enforcement action with no broader market impact but significant for the named entity.