SAT orders defreeze of Alka Securities MD bank, demat accounts

The Securities Appellate Tribunal (SAT) today ordered defreezing of the bank and demat accounts of Alka Securities promoter and MD Alka Pandey even as it asked the Sebi to issue a show cause notice to her to recover certain dues.
Further, the tribunal has asked Pandey to file a reply to Sebi notice within a week of receiving it, following which the market regulator has been directed to pass a final order on the said show cause notice within a period of two weeks.
The Securities and Exchange Board of India (Sebi) had in May ordered attachement of bank accounts, demat accounts and lockers of Pandey to recover Rs 25 lakh penalty that had been imposed on her in 2011 for violating capital market norms.

Pandey had paid the penalty amount belatedly on June 9 except the interest. Following this, she had appealed with SAT that "all attachment be raised" except amount of Rs 4.69 lakh lying in her joint saving bank account with Yes Bank. She had submitted that the amount in joint account could be utilised towards the interest liability that may be determined.
"Within a period of 1 week from today, Sebi shall issue a show cause notice to the appellant for recovery of interest, if any, on the amount of Rs 25 lacs already paid by the appellant from the date of adjudication order till payment," SAT said in the order today.

Pandey would have to file within a week her reply to show cause notice and "Sebi shall pass final order on the said show cause notice within a period of 2 weeks from the date of receiving reply to the show cause notice, after giving opportunity of hearing to the appellant," SAT added.

SAT said that subject to undertaking on Pandey along with her joint account holder (one Mahesh Kothari) "all attachments except amounts lying (in) Joint Saving Bank Account...Shall stand raised with immediate effect".
The amount of Rs 4.69 lakh lying in joint account would be kept in fixed deposit for such period as deemed fit by Pandey and the other account holder.

"Sebi will be entitled appropriate the...Amount of Rs 4.69 lakh together with accrued interest towards the interest liability pursuant to an order that may be passed in the proceedings," SAT said.
"However, such appropriation shall be only after 4 weeks from the date commencing from the date on which order raising interest liability is served upon the appellant," it added.
Further, SAT said if Sebi fails to initiate proceedings and pass order within the stipulated time attachment in respect of amount lying in joint saving account "shall stand raised on expiry of the period".