Huge Regulatory Action: SEBI Mandates Banks and Funds to Remit Over Rs 5 Lakhs from BSE Stock Option Defaulter
SEBI Issues General Remittance Order Against Stock Options Dealer
SEBI has issued a strict General Remittance Order targeting Ravi Ludhiyani HUF. The order, dated June 16, 2026, mandates all banks and mutual funds in India to remit the outstanding dues owed by the entity. This action is part of ongoing attachment proceedings concerning the defaulter’s involvement in dealings related to illiquid stock options at the BSE.The directive comes under Recovery Certificate No. 9086 of 2026, aiming to ensure recovery of funds meant for SEBI. The order places a legal obligation on financial institutions to assist in the debt collection process initiated by the securities market regulator.
Background: Illiquid Stock Options Dealing and Outstanding Dues
The principal concern relates to Ravi Ludhiyani HUF (PAN - AAQHR9636F). These proceedings stem from the defaulter’s activities concerning illiquid stock options transactions at the BSE. The Recovery Officer had previously directed the attachment of Bank/Demat Accounts and Mutual Fund Folios belonging to the entity.The initial total dues against the HUF were assessed at Rs 5,16,000/- (Rupees Five Lakh Sixteen Thousand Only). As per the current assessment in the notice, the outstanding amount owed by the defaulter has escalated to Rs 5,26,000/-, including interest, costs, and charges.
Financial Institutions Directed to Remit Funds
The order explicitly directs all Banks and Mutual Fund entities holding accounts or folios of Ravi Ludhiyani HUF to remit the current outstanding amount. This remittance must be made forthwith via EFT, NEFT, or RTGS into a designated SEBI account at ICICI Bank.Financial institutions are required to process the payment immediately and subsequently intimate the full remittance details to the specified email addresses at SEBI. The notice outlines a detailed table requiring payment details including transaction number and bank information.
Legal Basis for Regulatory Action
The direction is issued by SEBI in exercise of powers conferred under Section 28A and 28B of the SEBI Act, 1992. This legal action leverages provisions from the Securities Laws (Amendment) Act, 2014, alongside relevant sections of the Income Tax Act 1961.The robust regulatory enforcement underscores SEBI’s commitment to investor protection and timely recovery mechanisms. The order serves as a critical reminder to financial institutions regarding their role in executing compliance directives issued by the regulator in cases of market misconduct or defaults.
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