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SEBI Launches Fourth Settlement Scheme for Illiquid Stock Options Cases
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Moneycontrol•24-09-2026, 19:05
SEBI Launches Fourth Settlement Scheme for Illiquid Stock Options Cases
- •SEBI introduces its fourth settlement scheme for illiquid stock options (ISO) cases, offering another chance for entities facing regulatory action.
- •The scheme targets non-genuine trades on BSE between April 1, 2014, and September 30, 2015, with pending enforcement proceedings.
- •Previous schemes in 2020, 2022, and 2024 saw numerous entities settle their cases.
- •Settlement amounts are tiered based on the number of contracts: Rs 1.44 lakh for 1-5 contracts, Rs 2.88 lakh for 6-50 contracts, and Rs 7.2 lakh plus Rs 14,400 per contract for 51 or more.
- •The scheme operates under Section 15JB of the SEBI Act, 1992, and Regulation 26 of the SEBI (Settlement Proceedings) Regulations, 2018.
Key Questions Answered
The scheme provides eligible entities an opportunity to settle proceedings related to non-genuine trades executed on the BSE between April 1, 2014, and September 30, 2015, where enforcement proceedings are pending before various judicial, appellate, or regulatory forumsaly.
The settlement amount is linked to the total number of contracts involved, with entities holding one to five contracts paying Rs 1.44 lakh, those with six to 50 contracts paying Rs 2.88 lakh, and those with 51 or more contracts paying Rs 7.2 lakh plus an additional Rs 14,400 for each contract.
Prior to introducing this fourth scheme, SEBI had previously launched three settlement schemes for illiquid stock options cases in the years 2020, 2022, and 2024.
