SEBI Orders Immediate Attachment of Accounts for Arrowlink Chemical Over Stock Options Default
Regulatory Action Initiated Against Arrowlink Chemical Private Limited
The Securities and Exchange Board of India (SEBI) has taken decisive enforcement action against Arrowlink Chemical Private Limited. A Recovery Certificate, bearing No. 9085 of 2026, was issued on June 9, 2026. This certificate formalizes the recovery proceedings concerning the company's handling of illiquid stock options matters.The order mandates the immediate attachment of all associated Demat and Mutual Fund accounts held by the defaulter. This action is being executed under powers conferred by Section 28A(1) and 11(2)(ia) of the SEBI Act, 1992. The official notification confirms that the company is obligated to repay a significant outstanding sum along with interest and associated costs.
Breakdown of Financial Dues and Penalty Imposed by SEBI
The total amount due for recovery against Arrowlink Chemical Private Limited amounts to ₹ 5,31,000/- (Rupees Five Lakh Thirty-One Thousand Only). This sum relates directly to penalties and outstanding dues stemming from the Adjudicating Officer's order.A penalty of ₹ 5,00,000/- was imposed by the Adjudicating Officer in response to non-compliance regarding illiquid stock options. Additionally, a Recovery Cost of ₹ 1,000/- has been applied against the defaulting entity. Interest is calculated at 1% per month for the period spanning November 24, 2025, to April 10, 2026, amounting to ₹ 30,000/-.
Mandates Issued to Depositories and Fund Managers
The notice directs National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to attach all accounts belonging to Arrowlink Chemical Private Limited with immediate effect. This attachment applies across both their Demat holdings and any Mutual Fund folio associated with the company.Furthermore, a critical directive has been issued stating that no debits shall be made in the attached accounts until further instructions are received from SEBI. While debits are restricted, the notice allows for any credits to flow into the concerned accounts during this period.
Compliance Requirements and Next Steps
The companies holding the defaulter's accounts have been strictly directed to provide crucial documentation to the Recovery Officer. This includes detailed lists of all associated Accounts/folios held by Arrowlink Chemical Private Limited. They are also required to supply a confirmation of the account attachment along with copies of the relevant Account Statements.The notice emphasizes that the company is prohibited from dealing with any securities or instruments held in these specified accounts. If the defaulter holds no active accounts, this fact must be communicated immediately to SEBI’s Recovery Officer via email.
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