Sebi bans its employees from participating in auction

New Delhi: Markets regulator Sebi has barred its employees from participating in auction conducted by it for sale of movable and immovable properties of defaulters following recovery proceedings.

"No employee shall participate, either directly or indirectly, in an auction conducted by the board for sale of movable or immovable properties in pursuance of recovery proceedings initiated," the Securities and Exchange Board of India (Sebi) said in a notification.

For this, Sebi has amended Employees' Service Act and the new norm has come into force from April 27, it added.

Sebi is empowered to recover money from persons who fail to pay the penalty imposed by adjudicating officers or fail to comply with any direction of the board for refund of money or any violation of the disgorgement order.

The regulator has the power to attach bank accounts, lockers, shares and debentures, among others of the defaulter. Also, it can auction the properties of the defaulters in order to recover money of investors.