SEBI Takes Strict Action: Demat and Mutual Fund Accounts Attached in High-Value Default Case Over Illiquid Stock Options
The Securities and Exchange Board of India (SEBI) has issued a significant enforcement action, attaching the Demat and Mutual fund accounts of an individual due to outstanding dues related to Illiquid Stock Options. This regulatory move highlights SEBI's commitment to recovering funds owed under securities contracts.The attachment order, dated June 10, 2026, concerns Sushil Kumar Saraf (PAN: AKUPS9187L). The notice confirms the issuance of a Recovery Certificate No. 9081 of 2026 for the recovery of funds owed by the defaulter.
Details of Account Attachment and Enforcement
The SEBI order mandates the immediate attachment of all Demat accounts and Mutual fund folios held by Sushil Kumar Saraf with depository institutions in India. This directive is issued under Section 28A(1) and Section 11(2)(ia) of the SEBI Act, 1992.The action prevents the defaulter from disposing of any securities or instruments held in these accounts until further orders are received from the regulatory body. The notice serves as a formal direction not to deal with any assets held in the specified accounts.
Breakdown of Financial Dues and Penalties
The Recovery Certificate specifies that the total amount due for recovery is ₹5,21,000/- (Rupees Five Lakh Twenty One Thousand Only). These funds are owed in connection with the aforementioned certificate related to Illiquid Stock Options.A significant portion of the dues comprises a penalty imposed by the Adjudicating Officer. This penalty amounts to ₹5,00,000/-, which was issued against Sushil Kumar Saraf via Order No. Order/JS/YK/2025-26/31977 dated January 20, 2026.
Interest and Recovery Costs Cited in Notice
The outstanding balance also includes accrued interest and recovery costs attached to the defaulting party. The notice explicitly states that ₹20,000/- represents the interest calculated from January 20, 2026, up to April 8, 2026, at a rate of 1% per month.Finally, ₹1,000/- has been specified as the Recovery Cost associated with this proceeding. The total sum of ₹5,21,000/- is thus due for recovery against Sushil Kumar Saraf regarding the Illiquid Stock Options matter.
Regulatory Directives to Depositories and Asset Management Companies (AMCs)
The notice instructs National Securities Depository Limited and Central Depository Services (India) Limited to take immediate action regarding the attachment. The defaulter's Demat accounts and Mutual fund folios are now subject to an order for No Debit until further instructions are issued.Companies holding these accounts are directed to provide specific information, including details of all associated accounts/folios and copies of account statements, upon service of this notice. Should the individual not possess any such accounts or balances, institutions must confirm this status immediately via email at recoveryero@sebi.gov.in.
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