SEBI Issues Strict Recovery Notice: Demand of Rs 5,31,000 Against Ram Gopal Gupta HUF Over Illiquid Stock Options

SEBI Issues Strict Recovery Notice: Demand of Rs 5,31,000 Against Ram Gopal Gupta HUF Over Illiquid Stock Options​

The Securities and Exchange Board of India (SEBI) has issued a formal demand notice to Ram Gopal Gupta HUF concerning dues related to illiquid stock options. The certificate, dated June 9, 2026, outlines a total recoverable amount of ₹5,31,000, which includes penalties, interest accrued since January 21, 2026, and recovery costs.

This action falls under Section 28A of the SEBI Act, 1992, read with relevant provisions of the Income Tax Act, 1961. The notice mandates immediate payment of the calculated dues to the designated SEBI account or through the online recovery payment module on the SI portal.

Breakdown of Dues and Penalties​

The total outstanding amount of ₹5,31,000 is broken down across several components related to the adjudication of illiquid stock options. The primary component consists of a penalty imposed by the Adjudicating Officer vide Order No. Order/JS/YK/2025-26/31984 dated January 21, 2026, which amounts to ₹5,00,000/-.

An additional amount of ₹30,000/- has been levied as interest, calculated from January 21, 2026, until the notice date (June 9, 2026), at a rate of 1% p.m. A minor recovery cost of ₹1,000/- completes the total required payment.

Payment Directives and Compliance Window​

The HUF is directed to pay the total amount within fifteen days of receiving the notice. SEBI has provided multiple compliant methods for remittance. These include EFT/NEFT/RTGS payments to A/cNo. SEBIRRDPEN9144 of ICICI Bank (IFSC code: IClcooo0106), or through the designated online payment facility on the official website.

The notice serves as a clear directive, requiring strict adherence to the specified payment channels for proper accounting. Failure to submit remittance details in the prescribed format will result in the credits not being accounted toward the outstanding dues.

Severe Consequences of Non-Compliance​

SEBI has outlined several severe recovery mechanisms should the mandated dues remain unpaid. These measures underscore the seriousness of non-compliance with financial regulatory mandates. The potential actions include attachment and sale of movable property, seizure of bank accounts, or legal detention in prison.

Furthermore, SEBI specifies that recovery officers may appoint a receiver for the management of both movable and immovable properties belonging to the HUF. This punitive measure is designed to ensure the successful retrieval of the owed amounts.

Restrictions on Asset Transfers​

The notice places significant restrictions on Ram Gopal Gupta HUF regarding the handling of its assets. It states that upon service of this notice, the HUF is not competent to mortgage, charge, or lease any property without explicit permission from the Recovery Officer.

Any transfer made in contravention of this instruction will be deemed void, as per rule 16 of the Second Schedule to the Income-tax Act, 1961 read with Section 28A of the SEBI Act. The notice also warns against any direct or indirect transfer of properties or moneys held in bank accounts to a spouse, minor child, son's wife, or son's minor child.