Attach bank, demat accounts to recover due amount in Avon Corp case: Sebi

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Markets regulator Sebi on Tuesday ordered attachment of financial institution accounts in addition to shares and mutual fund holdings of a person to get better dues totalling round Rs 1.13 crore.

SEBI | demat account | Banking

Markets regulator Sebi on Tuesday ordered attachment of financial institution accounts in addition to shares and mutual fund holdings of a person to get better dues totalling round Rs 1.13 crore.

The restoration proceedings have been initiated towards one Pankaj Saraia after he didn’t pay superb imposed on him by Securities and Exchange Board of India (Sebi) in April 2020.

Sebi had levied a superb of Rs 1 crore on Saraia in a case pertaining to manipulation in issuance of world depository receipts (GDRs) of Avon Corporation.

Saraiya was chairman, managing director and chief govt officer of Avon on the time of violation. Avon had give you GDR points in June 2009.

In an attachment discover on Tuesday, Sebi has ordered attachment of financial institution in addition to demat accounts of the person to get better the pending dues.

The pending dues of Rs 1.13 crore contains preliminary penalty quantity, curiosity and restoration value, it added.

Sebi requested banks and depositories to not enable any debit from their accounts. However, credit have been permitted.

Further, the capital markets watchdog has directed the banks to connect all accounts, together with lockers, held by them.

The regulator mentioned there’s adequate cause to consider that the defaulter (Saraiya) might get rid of the quantities within the financial institution accounts and securities within the demat accounts and “realisation of quantity due beneath the certificates would in consequence be delayed or obstructed”.

In a discover to all banks within the nation, the regulator ordered to “connect with rapid impact…all accounts by no matter title, together with lockers of the defaulter, held both singly or collectively with some other individual, in your financial institution”.

The regulator has additionally requested banks, depositories and mutual funds to supply particulars of all accounts held by Saraia, together with copy of account statements. It has additionally sought full info of all mortgage accounts and advances.

In separate orders, the regulator has connected financial institution and demat accounts of Narendra Kumar Rathore and H Bhavesh Securities to get better Rs 8.67 lakh and Rs

5.45 lakh, respectively in two totally different instances.

The pending dues consists of preliminary penalty quantity, curiosity and restoration value, the orders famous.

The regulator levied a Rs Eight lakh penalty on Rathore in September 2020 within the matter of Malabar Trading Company.

Sebi imposed a superb of Rs 5 lakh on the brokerage home in August 2020 for flouting regulatory norms within the case of Spectacle Infotek, Goldstone Technologies, Gemstone Investments, LGS Global and Well Pack Papers and Containers.

(Only the headline and movie of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)

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