SEBI Orders Immediate Attachment of Accounts as Shanti Bhutra Fails to Clear Rs 5.16 Lakh Dues on Illiquid Stock Options

SEBI Orders Immediate Attachment of Accounts as Shanti Bhutra Fails to Clear Rs 5.16 Lakh Dues on Illiquid Stock Options​

SEBI has issued a critical order mandating the attachment of all Demat and Mutual Fund accounts held by Shanti Bhutra. The action follows proceedings concerning illiquid stock options, resulting in significant dues totaling ₹5,16,000/- against the defaulter. This enforcement notice was officially released on June 5, 2026.

Regulatory Action Against Defaulter​

The recovery proceedings pertain to a Recovery Certificate No. 9114 of 2026, which was drawn up by the Recovery Officer in relation to the stock options matter. A Notice of Demand dated May 14, 2026, had previously been issued to address these outstanding liabilities.

SEBI has determined that there is sufficient reason to believe that the defaulter may dispose of securities or instruments held in their accounts. Consequently, the regulator has moved swiftly to secure realization of the amount due under the said certificate.

Details of Attached Assets and Financial Dues​

The SEBI order mandates the attachment of all Demat accounts belonging to Shanti Bhutra, whether singly or jointly held. Furthermore, all Mutual fund folios linked to the individual are also attached with immediate effect.

The total outstanding dues amount attached under this proceeding is ₹5,16,000/-. This figure comprises multiple components related to penalty and recovery costs.

Breakdown of Financial Liabilities​

The owed amount has been meticulously detailed in the attachment proceedings. The primary component consists of a penalty imposed by the Adjudicating Officer vide Order No. Order/JS/VC/2025-26/32205 dated March 13, 2026 against Shanti Bhutra in the matter of Illiquid Stock Options, amounting to ₹5,00,000/-.

Additionally, there are specific charges for interest and recovery costs. An amount of ₹15,000/ was charged as interest running from March 13, 2026, to May 14, 2026 at a rate of 1% p.m. The Recovery Cost component is listed at ₹1,000/-.

Operational Directives for Financial Institutions​

The notice instructs the National Securities Depository Limited and Central Depository Services (India) Limited regarding the immediate attachment. It explicitly states that no debit shall be made in the affected accounts or folios until further orders from SEBI are issued.

However, any credits that may enter the attached account/folios will still be allowed. The financial institutions concerned have been directed to provide crucial details on all accounts and folios held by Shanti Bhutra, along with copies of relevant statements.

Legal Basis of the Attachment Notice​

This binding notice of attachment is issued in exercise of powers conferred under Section 28A(1), 11(2)(ia) of the SEBI Act, 1992. It also invokes relevant sections of the Income Tax Act, 1961, and other related provisions.

The order includes a clear direction that Shanti Bhutra must not deal with any securities or instruments held in the attached accounts. The process is overseen by the Recovery Officer at SEBI's Eastern Regional Office.