Sebi issues attachment orders against 8 entities to recover over Rs 62 lk

Mumbai: Sebi has initiated attachment proceedings against eight entities to recover dues of more than Rs 62 lakh in cases related to violation of securities market regulations. [caption id=“attachment_1280527” align=“alignleft” width=“380”]  IBNLive.com[/caption]Sebi has ordered attachment of bank accounts and demat accounts of the entities which include two firms – Hi-fi Tradecom and Hawks Financiers – as they have failed to pay fine imposed on them for securities market violations. Securities and Exchange Board of India has to recover Rs 22.57 lakh and Rs 18.81 lakh from Hi-fi Tradecom and Hawks Financiers respectively. Sebi also has to also recover dues from Prasad Tandel (Rs 6.42 lakh), Vikas G Narnavar (3.97 lakh), Rameshchandra K Jain (Rs 3.31 lakh), Prashant Narvekar (Rs 3.21 lakh), Prakash D Souza (Rs 3.22 lakh) and Swaminathan Rajendran (Rs 69,953). In separate orders, Sebi has asked banks to attach all accounts including lockers held by these entities. Similarly, the regulator has directed depositories - NSDL and CDSL – to attach all demat accounts of the defaulters. Sebi told the banks and the depositories that there was “sufficient reason” to believe that defaulters may dispose of the amounts in the accounts and “realisation of amount due under the certificate would in consequence be delayed or obstructed”. The regulator 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 the banks and depositories that with immediate effect “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. The watchdog has also asked for various details of the accounts held by the entities including account statements. The number of entities having defaulted on payment of penalties and other fines imposed by Sebi has risen to 1,614, at the end of December 2014 – a sharp increase of 16 percent from the year-ago levels. PTI