Sebi orders demat, bank account attachments of two persons
Mumbai: Market regulator Sebi has ordered attachment of bank and demat accounts of two defaulters to recover penalties worth Rs 84 lakh that was imposed on them for violating capital market norms.
The Securities and Exchange Board of India (Sebi) had imposed a penalty of Rs 54 lakh on one Kishore Thakkar in a matter of Ransi Software on September 30, 2005.
Separately in July 2010, the Sebi slapped a fine of Rs 30 lakh on Girdharbhai Karu for fraudulent dealings in shares of Kolar Biotech.
Recently, armed with powers to recover penalties from defaulters, the Sebi in attachment notices released on Thursday has directed the banks in the country to attach accounts held by the two individuals.
Besides, Sebi has asked depositories -- NSDL and CDSL -- to attach demat accounts of securities held by the defaulters.
In the notices to the banks and depositories, Sebi has said that it had "sufficient reason" to believe that the defaulters may dispose of the amount and securities held in the bank and demat accounts respectively. This, Sebi said, could result in delay and obstruction in realising the amount.
Accordingly, the Sebi has ordered banks and depositories to attach "all accounts by whatever name called of the defaulter, either singly or jointly with any other persons".
The Sebi has also asked 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 should be allowed in these accounts until further directions from the market regulator. However, the credits, if any into the account maybe allowed, Sebi said.
The Sebi has also asked for details of the accounts held by the entities, copy of the account statements, among others.