Market regulator Sebi today ordered attachment of bank and demat accounts of five individuals with a view to recover penalties worth Rs 25 lakh imposed on them for violating securities norm.
The Securities and Exchange Board of India (Sebi), in its order in November 2009, had imposed a total penalty of Rs 25 lakh on Ashok Ramswaroop Panchariya, Shantadevi Panchariya, Ramswaroop Panchariya, Saritadevi Panchariya and Radhadevi Satish Panchariya for violating capital market norms in the matter of Alka India.
However, Panchariyas failed to pay the dues.
Exercising its recent powers to recover penalties from defaulters, Sebi in an attachment notices released today has directed all the banks in the country to attach accounts held by the entities.
Besides, Sebi has asked depositories -- NSDL and CDSL -- to attach demat accounts of securities held by the entities.
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.
Accordingly, 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".
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 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.
Sebi has also asked for details of the accounts held by the enties, copy of his account statements, among others.
Last week, the regulator had ordered attachment of bank and demat accounts of Alka Securities and four entities, including the company's MD, to recover penalties totalling Rs 65 lakh that was imposed on them for violating capital market norms.
