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Sebi orders attachment of bank, demat accounts to recover penalty amount

The restoration proceedings have been initiated towards Arun Panchariya after he did not pay 50 crore advantageous imposed on him by Securities and Trade Board of India (Sebi) in June 2020.

PTI

PUBLISHED ON FEB 03, 2021 06:18 PM IST

Markets regulator Sebi has ordered attachment of financial institution accounts in addition to shares and mutual fund holdings of a person to get well dues totalling over 53 crore.

The restoration proceedings have been initiated towards Arun Panchariya after he did not pay 50 crore advantageous imposed on him by Securities and Trade Board of India (Sebi) in June 2020.

The penalty was imposed on him for manipulation in issuance of worldwide depository receipts (GDR) of Hiran Orgochem Ltd.

In an attachment discover on Tuesday, Sebi has ordered attachment of financial institution in addition to demat accounts of Panchariya to get well the pending dues.

The pending dues of 53.24 crore comprise preliminary penalty quantity, curiosity and restoration value, it added.

Sebi requested banks and depositories to not enable any debit from his accounts. Nevertheless, credit have been permitted.

Additional, the capital markets watchdog has directed the banks to connect all accounts, together with lockers, held by the defaulters.

The regulator stated there’s adequate motive to imagine that the defaulter could get rid of the quantities within the financial institution accounts and securities within the demat accounts and “realisation of quantity due beneath the certificates would in consequence be delayed or obstructed.”

In separate notices, Sebi has ordered attachment of financial institution and demat accounts of Strop Creations and Greenbucks Comtrade to get well penalty (together with curiosity quantity) of 1.65 lakh and 5.75 lakh respectively.

The regulator had levied a advantageous on Strop Creations in August 2018, whereas Greenbucks Comtrade was penalised in October 2019 for violating securities market norms in several issues.

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