SEBI Slams ₹5 Lakh Demand on Amit Kumar Agarwal HUF over Illiquid Stock Options Trading Failure
The Securities and Exchange Board of India (SEBI) has issued a formal Notice of Demand dated June 29, 2026, targeting Amit Kumar Agarwal HUF regarding matters related to dealing in illiquid stock options on the BSE. The notice specifies a significant financial demand, outlining detailed penalties, interest charges, and recovery costs pertaining to the entity’s trading activities.The action is taken under Certificate No. 9174 of 2026, drawing upon provisions of Section 28A of the Securities and Exchange Board of India Act, 1992, read with Section 222 of the Income Tax Act, 1961. The total demanded amount stands at ₹ 5,31,000.00, which must be remitted within 15 days of receiving the notice.
Detailed Breakdown of Penalties and Dues
The demand specifies that the total outstanding amount includes a substantial penalty imposed on Amit Kumar Agarwal HUF (PAN: AAIHA6110R). This primary penalty is valued at ₹ 5,00,000.00, as per an order issued by the AOvideOffice on January 28, 2026.The total financial liability also incorporates interest calculated from January, 2026, to June, 2026, amounting to ₹ 30,000.00. Additionally, a recovery cost of ₹ 1,000.00 has been assessed, bringing the cumulative total due to SEBI to exactly ₹ 5,31,000.00.
Severe Consequences of Non-Compliance Under SEBI Regulations
The notice is highly prescriptive regarding non-payment. If the dues are not settled within the mandated timeframe, SEBI explicitly states that it will pursue recovery through several severe measures. These potential actions include attachment and sale of movable property, attachment of bank accounts, and seizure of immovable assets.Furthermore, the notice warns of legal ramifications, including arrest and detention in prison if payment is defaulted upon. The matter highlights strict compliance requirements for all parties involved with the HUF's financial dealings.
Compliance Mandate and Property Restrictions
The demand instructs Amit Kumar Agarwal HUF to remit the full amount by direct credit through EFT/NEFT/RTGS to A/c No. SEBIRRDPEN9174 of ICICI Bank, IFSC code - ICIC0000106. An online payment facility is also available via the SEBI website's "Recovery Payment" module.Critically, the notice warns that upon service of this demand, the HUF entity is restricted from mortgaging, charging, leasing, or otherwise dealing with any property belonging to it. Any such transfer undertaken without permission from the Recovery Officer will be deemed void as per Rule 16 of the Second Schedule to the Income-tax Act, 1961 read with SEBI regulations.
The notice is issued by Kirtikumar Jadhay, General Manager and Recovery Officer at the Securities and Exchange Board of India, emphasizing that further interest and any associated recovery costs will be added to the dues should payment not be completed immediately.
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