SEBI Issues Strict Demand Notice: Defaulter in BSE ISO Matter Must Clear ₹5.21 Lakh Within 15 Days to Avoid Arrest

SEBI Issues Strict Demand Notice: Defaulter in BSE ISO Matter Must Clear ₹5.21 Lakh Within 15 Days to Avoid Arrest​

The Securities and Exchange Board of India (SEBI) has issued a stern demand notice to Rashmi Chandak, a defaulter in connection with an ISO matter at the Bombay Stock Exchange (BSE). The formal notice, dated June 16, 2026, mandates the recovery of a substantial sum, detailing significant penalties imposed by the Adjudicating Officer.

This action underlines SEBI's rigorous enforcement mechanisms against individuals found non-compliant in market-related matters. The certificate serves as a clear warning regarding the severe consequences of outstanding dues under Section 28A of the Securities and Exchange Board of India Act, 1992.

Breakdown of Penalties and Outstanding Dues​

SEBI has mandated the recovery of a total sum amounting to ₹5,21,000/- (Rupees Five Lakh Twenty-One Thousand Only). This amount encompasses penalties imposed during the adjudication process as well as accrued interest and recovery costs.

The dues are itemized as follows:

• Penalty: A penalty of ₹5,00,000.00 was imposed by the Adjudicating Officer following Order No. Order/JS/YK/2025-26/32303 dated March 27, 2026 in relation to the ISO at BSE-Rashmi Chandak matter.
• Interest: An amount of ₹20,000.00 has been levied for interest calculated from March 2026 to June 2026 at a rate of 1% p.m.
• Recovery Costs: The notice specifies recovery costs amounting to ₹1,000.00.

Legal Implications and Mandatory Compliance Steps​

The Notice of Demand explicitly directs the defaulter to clear the full amount within fifteen days of receiving the document. Payment must be made through direct credit via EFT/NEFT/RTGS or through the specified online payment facilities on the SEBI website.

Failure to settle these dues within the stipulated period carries grave consequences as detailed under Section 28A of the SEBI Act, 1992. SEBI has reserves the right to proceed with recovery using multiple severe methods.

Severe Recovery Measures Detailed by SEBI​

In the event of non-payment, the defaulter faces serious legal actions. These measures include:

• Attachment and subsequent sale of movable property belonging to the defaulter.
• Direct attachment of all associated bank accounts.
• Attachment and forced sale of immovable property.
• The severe measure of arrest and detention in prison.

Furthermore, SEBI has placed strict limitations on the individual's financial dealings. As per Explanation 1 to section 28A of the SEBI Act, any transfer of property or funds held by the defaulter to a spouse, minor child, son's wife, or son's minor child, without adequate consideration and after March 27, 2026, shall be deemed as belonging to the defaulter for recovery purposes.

Warning Against Unlawful Property Transactions​

The notice serves as an absolute directive regarding property dealings. Upon service of this demand, the individual is explicitly prohibited from mortgaging, charging, leasing, or otherwise dealing with any of their properties. Any such transaction undertaken during this period shall be deemed void according to Rule 16 of the Second Schedule to the Income-tax Act, 1961 read with Section 28A of the SEBI Act.

All parties are strongly advised to maintain meticulous records of e-payments made and submit confirmation details to The Recovery Officer at the Securities and Exchange Board of India promptly. Failure to provide proper payment confirmation will result in credits not being accounted against the total dues.