SEBI Orders Attachment of All Accounts for Arrowlink Chemical Amid Illiquid Stock Options Debt

SEBI Orders Attachment of All Accounts for Arrowlink Chemical Amid Illiquid Stock Options Debt​

SEBI has issued a stern directive, attaching all accounts belonging to Arrowlink Chemical Private Limited. The move comes in the context of significant dues related to illiquid stock options, placing a formal recovery action against the company. This regulatory step was finalized on June 9, 2026.

The attachment order targets all banks operating within India and aims to ensure the recovery of funds owed by Arrowlink Chemical Private Limited (PAN: AAKCA1933D). The directive utilizes powers conferred under Section 28A (1) and 11(2)(ia) of the SEBI Act, 1992.

SEBI Seizes Accounts of Arrowlink Chemical for Recovery​

The Certificate No. 9085 of 2026 was drawn up by the Recovery Officer regarding the recovery of a specific sum against the company. A prior Notice of Demand dated April 10, 2026, had already been issued to Arrowlink Chemical Private Limited.

SEBI determined that there was sufficient reason to believe that the defaulter might dispose of funds held in bank accounts. Consequently, the Principal Officer ordered the attachment of all existing and future proceeds due to the company across all its financial holdings.

The order mandates the immediate attachment of:
1. All account types, including lockers, singly or jointly held by the company with any bank.
2. Any other amounts or proceeds due to the defaulter.

Breakdown of Dues and Penalties Imposed​

The total amount due from Arrowlink Chemical Private Limited stands at ₹5,31,000/-. This sum comprises various components resulting from the matter concerning illiquid stock options.

The details of the dues are as follows:

• Penalty imposed by the Adjudicating Officer dated November 24, 2025: ₹5,00,000/-
• Interest accrued from November 24, 2025 to April 10, 2026 @ 1% p.m.: ₹30,000/-
• Recovery Costs: ₹1,000/-

Banks Directed on Account Management​

The order issued by SEBI contains critical instructions for all banks in India regarding the attached accounts. These directives aim to prevent the dissipation of assets while allowing normal operations where possible.

It is specifically ordered that no debit shall be made from the attached account(s) towards the total dues until further orders are received from the Recovery Officer of SEBI. However, any credits deposited into these designated accounts may still be allowed.

Banks have also been directed to provide comprehensive details regarding the company’s financial standing. This includes providing copies of account statements for the latest one year and confirmation of the attachment itself. If the company holds no accounts or has a zero balance in its bank accounts, this fact must be immediately reported to SEBI via email.