In order to recover dues worth nearly Rs. 28 lakh for violations of capital market regulations, Securities and Exchange Board of India (SEBI) has ordered attachment of bank accounts as well as securities Demat accounts of five entities.
Three companies — Brijlaxmi Leasing & Finance (Rs. 13.62 lakh), Sawaca Communication (nearly Rs. 4.4 lakh) and IFSL Ltd (Rs. 3.05 lakh) – are to submit dues to the capital market watchdog.
Besides, the SEBI has to recover an amount of Rs. 6.30 lakh from Ankur Chaturvedi and Rs. 55,589 from Mahendra A Shah.
The pending dues include penalties imposed on the entities for violation of securities market norms besides interest and other costs.
Apart from this, in separate attachment orders dated September 26, SEBI has asked banks to attach all accounts including lockers held by the five entities.
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And the similarly, the regulator has instructed depositories — NSDL and CDSL — to attach all demat accounts of the defaulters.
SEBI explained the banks and the depositories that there was “sufficient reason” to hold that defaulters may dispose of the amounts or securities in the bank and securities accounts respectively and “realisation of amount due under the certificate would in consequence be delayed or obstructed”.
SEBI has asked banks and depositories to attach “all accounts by whatever name called of the defaulter, either singly or jointly with any other persons”.
The regulator has also ordered the banks to attach the lockers held by the entities as well as “all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter”.
It has further ordered the banks and depositories that with immediate effect no debit would be made in these accounts until further directions from the market regulator.
However, the credits, if any, into the account maybe allowed, SEBI said.
The watchdog has also asked for various details of the accounts held by the entities, including account statements.
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Tushita is a political writer at thenational.net. Her deep rooted interest in politics, passion for writing and craze for travelling define her. Writing since her school days, she aspires to write lifelong and make the world a happier place to live with the power of her pen.
