Capital markets regulator Sebi today ordered attachment of bank and demat accounts of Weird Infrastructure, its promoters and directors, to recover dues worth over Rs 16 crore.
The attachment order comes after Sebi, in July, had asked the company and its directors to refund Rs 16.28 crore to investors that had been illegally raised from them.
The company had allotted 1,62,794 non-convertible debentures (NCDs) worth Rs 16.28 crore without complying with the 'public issue' norms.
Also, the company and its promoters and directors were barred from the capital markets for four years.
As the firm failed to comply with the earlier directive, the regulator initiated attachment and recovery proceedings.
In an attachment order, Sebi has directed banks to attach all accounts, including lockers held by the company, its promoters and directors.
The watchdog has also asked for details of the accounts held by them, including account statements.
Similarly, it has directed depositories -- NSDL and CDSL -- to attach all demat accounts of the defaulters.
The regulator 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.
The regulator said concessional transactional charges will
be charged only on incremental volume/turnover. Transaction charges are to be charged-on post-facto basis, that is after the trades are executed.
Sebi would levy up to 5 per cent penalty -- of the shortfall in the required margin money -- on members of commodity bourses for failing to collect the required amount from clients.
Members are required to collect the 'margin money' from clients, which is later deposited with the exchange. Margin money includes a percentage of the value of commodity that a client is keen to trade.
A penalty of 5 per cent of the shortfall in margin money would be imposed on members who are repeat defaulters.
One per cent would be levied on each day if members fail to collect the margin money for more than three consecutive days after trading plus two working days (T+2). The same penalty would be imposed from the day one if initial margin is not collected.
Members will have to collect upfront initial margins from their clients. They are given time till 'T+2' working days to collect margins (except initial margins) from their clients.
They are required to report to the exchange on T+5 day the actual short collection/non collection of all margins from clients, it said.
The penalties collected should be credited to Investor Protection Fund. The bourses are directed to submit the report on the penalties to Sebi by 10th day of the following month.
Sebi said that incorrect reporting on collection of margin would attract a penalty of 100 per cent of amount short collected.
Separately, Sebi has issued norms for Due Date Rate (DDR) fixation for regional commodity exchanges, including formation of DDR committee.
The exchange would have a DDR committee comprising of at least 50 per cent members other than the trading ones. Secretary/Executive Director of the bourse would be member of DDR Committee.
Besides, top two members holding highest long and highest short position, respectively, would be invited as observers at the time of fixing of DDR by the committee.
In case, these top two members are not available or not willing to come, then authorised representatives of highest long/short position holder may be called as observers.
The committee would decide the names of at least 15 entities of various trade interests from upcountry markets for forming Spot Price Polling Panel. At least 20 per cent of the panelists will be changed every year.
The committee will ensure that the entities forming polling panel should not be related/connected to each other or to the DDR committee members or to directors of the Exchange.
"It means that the entities should not have any cross shareholding, family relationship and commercial relationship among themselves, and with the DDR committee members or with the directors of the exchange," Sebi said.
The spot price rates would be collected from panelists on
the polling panel on daily basis, starting with three days prior to the due date of the contract, so that the trade would be aware of likely price trend beforehand. This information would have to be disseminated to trade and be placed on the notice board of the exchange on daily basis.
The spot price should be polled over phones in front of all the DDR Committee members present, including top two members holding the highest long and highest short position.
While making telephonic calls, voice recording in electronic form shall be maintained for a period of six months, it said.
Average of the spot prices of last three days, on which spot prices are available, prior to the due date but not earlier than seven days would be considered for fixing DDR. The rates would be polled once a day during 1 to 4 pm in order to capture this most active trade time.
DDR has to be arrived at in terms of the procedure prescribed and then recommended to Sebi for final approval.
If Sebi wishes to modify DDR proposed by the committee for cogent and sufficient reason, the same would be duly recorded in the minutes of the board along with full justification.
"Once DDR is fixed, it shall be announced immediately in the trading ring and displayed on the notice board and website of the exchange," the regulator said.
All the records of DDR fixation of each contract would be maintained for six months. The proceedings of DDR fixation of each contract would be sent to Sebi.
