SEBI Orders Immediate Remittance as Massive Recovery Drive Targets Misuse of Illiquid Stock Options on BSE

SEBI Orders Immediate Remittance as Massive Recovery Drive Targets Misuse of Illiquid Stock Options on BSE​

SEBI has issued a critical General Remittance Order, directing financial institutions to facilitate the recovery of dues from Makwana Bharat S. HUF. The order relates to proceedings under which the entity was found liable concerning dealing in illiquid stock options on the Bombay Stock Exchange (BSE). This regulatory action underscores SEBI’s commitment to enforcing accountability in capital markets transactions.

The Recovery and Refund Department published the order, specifying that the defaulter, Makwana Bharat S. HUF (PAN: AALHM4561P), must remit the current dues through their associated banks or mutual fund folios. The proceedings are governed under Recovery Certificate No. 9093 of 2026 and relate to specific attachment proceedings.

Financial Liability and Background of the Case​

The case involves a total due amount, along with accrued interest, costs, charges, and expenses. Initially, the total amount was directed against as ₹5,21,000.00 (Rupees Five Lakh Twenty-One Thousand only).

Following prior notices and warnings, the current liabilities/dues from Makwana Bharat S. HUF have been updated to ₹5,31,000.00 (Rupees Five Lakh Thirty-One Thousand only) as of the date of this order, 18 June 2026. The recovery action is executed in adherence to SEBI Act procedures, specifically under section 28A of the SEBI Act, 1992.

Regulatory Compliance and Remittance Directive​

The Order mandates that all concerned banks and mutual funds must remit the outstanding amount of ₹5,31,000.00 directly to SEBI. This remittance must be completed forthwith using EFT/NEFT/RTGS to A/c No. SEBIRRDPEN9093 of ICICI Bank (IFSC Code: ICIC0000106).

Financial institutions are strictly instructed to intimate the full remittance details via email to the specified SEBI addresses, ensuring a structured format including Case Name and Recovery Certificate Number. The notice serves as a formal exercise of powers conferred under multiple sections of securities laws.

Implications for Financial Institutions​

The directive places direct responsibility on banks and mutual funds associated with Makwana Bharat S. HUF. The institutions are required to either remit the amount lying in the defaulter's account or redeem the units held in the folios against the specified dues.

This regulatory direction emphasizes that without confirmed e-payment matching the prescribed format, no credits made by the financial institutions will be accounted towards the recovery target. This mechanism ensures strict adherence and transparency throughout the recovery process initiated by SEBI.