Sebi orders attachment of bank, dematerialized accounts of two violating companies

New Delhi: Markets regulator Sebi has ordered attachment of bank accounts, demat accounts and mutual fund folios of Shree Sai Spaces Creations and Wasankar Wealth management for violating capital market norms.

The move is part of Sebi's efforts to recover dues worth over Rs 50 crore collectively from both the firms. The regulator has ordered attachment of bank accounts, demat accounts and MF folios of Shree Sai Spaces Creations to recover Rs 39,22,03,162 due to the investors, whereas Wasankar Wealth management owes Rs 12,89,01,000.

Representational Image. Photo credit: ibnlive

Representational Image. Photo credit: ibnlive

The pending dues include fine imposed on them along with interest, charges, expenses and other costs. The attachment order comes after the firms violated various capital market norms and also failed to comply with Sebi's earlier directive to refund investors' money along with interests.

While Shree Sai Spaces Creations raised money from public through 'collective investment schemes' (CIS) without getting
regulatory approval, Wasankar Wealth management mobilised funds from 228 investors by issuing preference shares without
complying with the public issue norms.

In two separate orders, Securities and Exchange Board of India (Sebi) has directed banks to attach all accounts including lockers held by the two companies and their directors. 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 the firms, including account statements. The markets regulator has been given powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.


Updated Date: Feb 29, 2016 12:25 PM

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