SEBI issued Certificate No. RC9114 of 2026 as a Notice of Demand against Shanti Bhutra (PAN: AHRPB8152A) for illiquid stock options violations. This enforcement action represents SEBI's crackdown on market manipulation through illiquid derivatives trading. The certificate indicates potential violations under SEBI regulations regarding stock options with poor liquidity, market abuse, or insider trading. Such notices typically involve monetary penalties, disgorgement of profits, and trading restrictions. The case reflects SEBI's enhanced surveillance capabilities and regulatory framework strengthening.

This SEBI enforcement action demonstrates the regulator's sophisticated surveillance mechanisms for detecting market manipulation in derivatives segments, particularly illiquid stock options where price discovery is compromised. When stock options lack adequate liquidity, they become susceptible to manipulation through artificial price movements, creating unfair advantages for certain market participants. SEBI's Notice of Demand system allows for swift regulatory action without lengthy adjudication processes, enabling immediate recovery of ill-gotten gains. The RC certificate series indicates this is part of SEBI's systematic approach to market surveillance using advanced analytics to identify suspicious trading patterns. Such cases often involve violations of PFUTP regulations (Prohibition of Fraudulent and Unfair Trade Practices), market manipulation under Section 12A of SEBI Act, or insider trading provisions. The targeting of illiquid options specifically shows SEBI's focus on segments where retail investors are most vulnerable to sophisticated manipulation schemes. This enforcement action reinforces SEBI's mandate to protect investor interests while maintaining market integrity through deterrent penalties and public disclosure of violations.