Sebi comes out with list of untraceable defaulters

The defaulters failed to return investors' money or failed to pay fines imposed on them by the regulator for various offences related to the securities market

Capital markets regulator Sebi on Friday came out with a list of defaulters entities, including individuals, who are found to be untraceable.

Publishing the details of untraceable defaulters on its website, Sebi said the recovery certificates were drawn up against these entities by the regulator's recovery officer. However, these notices could not be served on the defaulters at their last known addresses.

These notices were served from April 2015 to July 2021, the Securities and Exchange Board of India (Sebi) said in a notice.

Those named by Sebi are -- MCX Biz Solutions and its proprietor Syed Sadaq; Bharat Vaghela, Giridhar J Vagadia, Kalpesh Babariya, Vithalbhai Gajera, Laxminarayana Veeramallu Doosa, Umesh Choukekar, Bindu R Menon, Nilesh Palande and Ghanshyam Dayabhai Patel.

These defaulters failed to return investors' money or failed to pay fines imposed on them by the regulator for various offences related to the securities market.

In the notice, the regulator has asked these defaulters to contact Sebi's recovery officer by sending a letter or an email by January 22, 2022.

"Further, if any person is aware of the whereabouts of the defaulter (s)...detail of the same may be provided by sending a letter to the recovery officer... or an email... by January 22, 2022," it added.

Of these entities, MCX Biz Solutions and its proprietor Syed Sadaq were directed by Sebi in 2017 to return the money collected from investors after finding them guilty of duping investors through false documents. Besides, they were barred from the securities markets for 10 years.

The company allegedly solicited money from investors promising huge returns while using fake and forged broker registration documents and a name similar to that of an exchange group.

Sebi has powers to recover money from various entities by way of passing orders for a refund of money to investors, disgorgement of funds to be distributed to investors, and also collecting fees and penalties levied by it.

Since getting the recovery powers in 2013, Sebi has initiated recovery proceedings against a large number of defaulters.