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Market regulator Sebi has ordered attachment of bank and demat accounts of Ankur Cultivators to recover penalties of Rs 1 crore imposed on the company for violation of securities norms.
The Securities and Exchange Board of India (Sebi) in November 2003 had imposed penalty on Ankur Cultivators for violating securities regulation in the matter of Shonkh Technologies International Ltd.
Armed with more powers to deal with defaulters, Sebi recently began directing attachment of bank accounts to recover penalties from entities that have allegedly violated capital market norms.
In a notice of attachment dated November 13, Sebi asked Bank of America, Vijaya Bank and all other banks in the country to attach all accounts of the defaulter (Ankur Cultivators) held with it with immediate effect.
It also asked National Securities Depository Ltd (NSDL) to attach demat accounts of the defaulter.
Sebi also ordered attachment of "all other accounts by whatever name called of the defaulter as well as any locker registered in the name of defaulter, either singly or jointly with any other persons."
"All other amount/proceeds due or may become due to the defaulter or any other money held or may subsequently hold for or on account of defaulter," it noted.
It is further ordered with immediate effect that no debit would be made in these accounts until further orders from the market regulator, according to Sebi directives.
However, the credits, if any into the account maybe allowed, Sebi said.
The move is part of Sebi's efforts to recover a total fine of Rs 1 crore "along with interest, all costs charges and expenses in respect of all proceeding for recovering the said sum against Ankur Cultivators and the same is due from it."
Also, Sebi has asked about account details of the defaulters for the past one year including lockers, loan accounts and copy of account statements.
The watchdog now has powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.
Sebi has so far issued 154 attachment notices for recovering more than Rs 1,545 crore from defaulters.
