SEBI Slams Rupee Services: Huge Demand Notice Issued Over Deficiencies in Illiquid Options Trading at BSE
The Securities and Exchange Board of India (SEBI) has issued a stringent Notice of Demand against Rupee Services Private Limited. The notice, dated June 16, 2026, pertains to irregularities found during the handling of illiquid stocks options traded on the Bombay Stock Exchange (BSE). This action signifies SEBI’s intensified scrutiny over specialized derivatives trading within the market structure.The demand certificate confirms that Rupee Services Private Limited is liable for a substantial outstanding amount in favor of SEBI, along with associated costs and interest incurred during regulatory proceedings. The directive mandates compliance within a strict 15-day period to mitigate severe enforcement measures.
Details of Financial Penalties Imposed by SEBI
The total outstanding dues owed by Rupee Services Private Limited stand at ₹5,16,000.00. This amount is comprehensively detailed in the certificate issued under Section 28A of the Securities and Exchange Board of India Act, 1992 read with Section 222 of the Income Tax Act, 1961.The financial burden includes a significant penalty levied by the Adjudication Officer (AO). The fine component totals ₹5,00,000.00 and was imposed via an Order dated April 8, 2026, concerning the matter of dealing in Illiquid Stocks Options at BSE.
Further costs account for the remaining balance. Interest calculated from April 2026 to June 2026 amounts to ₹15,000.00 per annum, while recovery costs have been set at ₹1,000.00.
Regulatory Consequences of Non-Compliance
The Notice of Demand outlines severe repercussions should the specified amount not be paid within the stipulated timeframe. SEBI is prepared to proceed with enforcement actions as defined under Section 28A of the Act and related sections of the Income Tax Act, 1961.In case of non-payment, the Recovery Officer holds the power to recover the money through multiple modes. These methods include the attachment and sale of the company’s movable property.
The regulatory threat extends to financial seizure, covering both bank accounts and immovable assets. Furthermore, the notice specifies that arrest and detention in prison remain potential enforcement avenues for non-compliant entities.
Restrictions Imposed on Rupee Services Private Limited
In addition to the recovery proceedings, SEBI has imposed critical operational limitations on Rupee Services Private Limited. The company is now advised that it is not competent to mortgage, charge, lease or otherwise deal with any of its property.Such transactions must receive prior permission from the Recovery Officer. Any transfer or dealing conducted without this necessary approval will be deemed void as per Rule 16 of the Second Schedule to the Income-tax Act, 1961.
The notice underscores the necessity of swift action. Confirmation of e-payment is mandatory and must be forwarded in a specific format to The Recovery Officer, Recovery Division IV, Securities and Exchange Board of India, SEBI Bhavan-II, Mumbai.
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