Markets regulator Sebi has ordered attachment of bank and demat accounts of two companies -- Trillenium Technologies and Vizwise Commerce -- to recover dues worth over Rs 8 lakh for violation of various norms.
The pending dues include fine imposed on them, along with interest, charges, expenses and other costs.
Exercising its powers to recover penalties from defaulters, the Securities and Exchange Board of India (Sebi) has ordered attachment of bank and demat accounts of Trillenium Technologies and Vizwise Commerce to recover dues worth Rs 6,57,570 and Rs 2,31,773, respectively.
Furthermore, Sebi has directed banks to attach all accounts, including lockers, held by them. Similarly, the regulator has directed depositories -- NSDL and CDSL -- to attach all demat accounts of the defaulters.
The watchdog has also asked for various details of the accounts held by them, including account statements.
In separate attachment orders, Sebi said there are sufficient reasons to believe that the defaulters may dispose of the amount and securities held in bank and demat accounts, respectively, and "realisation of amount due under the certificate would in consequence be delayed or obstructed".
Sebi has been given powers to attach properties and bank accounts, among other things, of persons and entities that have failed to comply with directions involving payment of penalties and other dues.
Issues relating to algo trades and co-location services as
also new products and new investor classes in commodities market are also on the agenda.
This will also be the first board meeting of Sebi after the government last month extended by another year the tenure of Chairman U K Sinha, who assumed charge on February 18, 2011.
Sebi is also keen on steps to tackle cross jurisdictional market manipulation for which it plans to pitch for greater co-operation between regulators.
Other steps high on Sebi's agenda include greater penetration of various financial products, including corporate bonds, mutual funds and equity products while safeguarding the interest of small investors.
Sinha would also give a clear message that the regulator will keep a hawk's eye on all kinds of manipulative activities, including those aimed at defrauding investors.
The regulator is also likely to discuss its budget estimates and planned policy measures for the next fiscal as also the status of the proposals that were planned for the current financial year ending this month.
Some of the proposals that could not be implemented so far would be looked into afresh.
One such proposal includes greater regulatory clarity for M&A deals, under which Sebi plans to put in place new guidelines to define bright lines identifying the change of control in such transactions.
Under Sebi's Takeover Regulations, the definition of 'control' is based on certain defined principles rather than on rules and there have been cases when a multitude of opinion have given rise to different assessments of 'control' over a listed company, a senior official said.
To deal with such cases, the regulator has decided to define certain bright lines for identifying the control, he added.
A bright-line rule or a bright-line test generally refers to a simple and basic standard that can be applied to remove ambiguity and resolve contentious issues.
In cases of mergers and acquisitions, an acquirer or any other entity would be considered to be gaining control of the target company if it fulfils the bright line tests with regard to acquisition of voting rights, control over operations and influence in board decisions.
There have been many cases, including the much-talked about Jet-Etihad deal, when the issue of control was debated a lot and it was felt that Sebi needs to put in place specific guidelines defining bright lines to determine the control.
