Capital markets regulator Sebi has ordered attachment of bank as well as demat accounts of 3 defaulters to recover Rs 29.47 lakh dues in a case related to fraudulent trading the Asian Star Company stock.
Sebi has to recover Rs 12.06 lakh from Usha Mehta, Rs 10.84 lakh from Pradeh Bandhu Nimawat and Rs 6.56 lakh from Rajnish Bhanwarlal Jain in penalties and interest.
The case relates to 'circular and synchronised trading' by certain entities in shares of Asian Star in such a manner that led to creation of artificial volume in the scrips.
In three attachment notices dated June 17, the Securities and Exchange Board of India has directed the banks to attach accounts held by the entities.
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 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, it 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 no debit from the 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 three.
