Market regulator Sebi has directed banks and depositories to freeze the bank and demat accounts of Victory Trading Corporation to recover penalty worth Rs 1 lakh that was imposed on the company for violating securities norms.
The Securities and Exchange Board of India (Sebi) in 2010 had imposed the penalty on Victory Trading Corporation for violating capital market norms in the matter of K Sera Sera Productions.
However, Victory Trading Corporation did not pay the pending dues and consequently Sebi initiated action against it and directed various banks in the country to attach accounts held by the company.
Besides, the regulator has asked securities depositories --NSDL and CDSL--to attach the demat accounts of the company.
In the notice issued to the banks yesterday, Sebi has said that it had "sufficient reason" to believe that the defaulters may dispose of the amount and securities held in the bank.
Accordingly, Sebi has ordered banks 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 company as well as "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 has further ordered with immediate effect that 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 company, copy of its account statements, among others.
