Archive · 24 Sep 2026
SEBI Announces Fourth Settlement Scheme for Illiquid Options
SEBI has created a new way for some entities to settle cases involving illiquid stock options.
The cases concern trades on the BSE made between April 2014 and September 2015.
SEBI says the trading was non-genuine.
The scheme can be used when related legal or enforcement proceedings are still pending.
The amount to be paid depends on how many contracts were involved.
Smaller cases cost ₹1.44 lakh or ₹2.88 lakh to settle.
Larger cases cost ₹7.20 lakh plus an additional amount for each contract.
SEBI will announce separately how entities can apply.
SEBI introduced a fourth settlement scheme for non-genuine trading in illiquid stock options on the BSE.
The scheme covers trades conducted between April 1, 2014, and September 30, 2015.
It applies to cases with proceedings pending before an adjudicating officer, tribunal, court, or recovery officer.
Settlement amounts range from ₹1.44 lakh to ₹7.20 lakh plus ₹14,400 per contract.
SEBI said earlier schemes launched in 2020, 2022, and 2024 enabled many entities to settle proceedings.
- Who
- The Securities and Exchange Board of India and entities involved in non-genuine trading in illiquid stock options.
- What
- SEBI introduced a fourth settlement scheme for related enforcement proceedings.
- When
- The covered trading occurred from April 1, 2014, to September 30, 2015; the announcement was published September 24, 2026.
- Where
- On the BSE and in proceedings before Indian enforcement and legal authorities.
- Why
- To allow eligible entities to settle pending proceedings connected with the alleged non-genuine trading.
- Regulator
- Securities and Exchange Board of India (SEBI)
- Covered market
- BSE
- Covered period
- April 1, 2014, to September 30, 2015
- One to five contracts
- ₹1.44 lakh
- Six to 50 contracts
- ₹2.88 lakh
- 51 contracts and above
- ₹7.20 lakh plus ₹14,400 per contract
- Earlier schemes
- Introduced in 2020, 2022, and 2024