SEBI Fires Regulatory Warning: Key Defaulter's Securities Attached as ₹5.21 Lakh Recovery is Mandated
Enforcement Action Against Shilush Trading Private Limited
SEBI has issued a significant regulatory directive, attaching the securities and mutual fund folios of Shilush Trading Private Limited (PAN: AALCS0075M). The order, dated June 9, 2026, concerns recovery proceedings related to illiquid stock options. This action places restrictions on the company's existing assets held with depository and mutual fund institutions nationwide.The decision follows a Recovery Certificate No. 9116 of 2026, which outlines the outstanding dues owed by Shilush Trading Private Limited. The regulatory body has exercised its powers to prevent the defaulter from disposing of assets that could otherwise delay or obstruct the realization of the amount due.
Breakdown of Financial Dues
The total recovery demanded under the proceedings amounts to ₹5,21,000/- (Rupees Five Lakh Twenty One Thousand Only). These dues relate directly to a Notice of Demand issued on May 15, 2026. The charges are itemized as follows:A penalty imposed by the Adjudicating Officer amounting to ₹5,00,000/- constitutes the largest component of the recovery amount. This penalty was levied against Shilush Trading Private Limited in relation to the matter of Illiquid Stock Options.
The remaining dues include interest and necessary recovery costs. Interest, calculated from February 13, 2026, to May 15, 2026, stands at ₹20,000/-. A Recovery Cost fee of ₹1,000/- has also been charged in the proceedings.
Mandate and Restrictions on Securities
The attached accounts include all mutual fund folios and demat accounts held by Shilush Trading Private Limited with designated institutions. The order dictates that no debit shall be made against these specified accounts/folios until further directions are issued by SEBI.However, the notice permits the entry of any credits into the respective accounts. Furthermore, the company is strictly directed not to deal with or attempt to hold those securities and instruments contained in the affected folios.
Compliance Directives for Depositories
The Managing Director of Central Depository Services (India) Limited has been formally instructed regarding this attachment proceeding. The instruction requires immediate execution of the attachment concerning all accounts held by Shilush Trading Private Limited, whether singly or jointly.The deputized entities are further directed to provide specific documentation, including details of all associated folios and a confirmation of the attachment itself. If the company possesses no such accounts or balances, this fact must be promptly communicated via email to recoveryero@sebi.gov.in.
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