SAT vacates Sebi order attaching jt bank account in IPO case

Securities Appellate Tribunal has directed Sebi to attach only the demat account of a couple who had indulged in capital market irregularities, instead of their joint bank accounts for recovering Rs 6 crore penalty.
SAT has vacated Securities and Exchange Board of India's (Sebi) order to attach joint accounts of the couple - Dushyant Natwarlal Dalal and his wife Puloma Dushyant Dalal - held with other entities.
In their appeal, the six entities that jointly hold accounts with the couple submitted to SAT that "it would be just and proper" to attach only the demat account held by Dushyant which has shares valued at over Rs 47 crore.

The appellants include Yuti Kunal Jhaveri - the daughter of the couple.
In its order dated December 23, the tribunal noted that Sebi had not provided any "valid reason" for not accepting the proposal on the same.
Noting that there is no reason to reject the appellants' proposal, the tribunal said attachments levied on various joint bank accounts on October 18, 2013 are vacated while shares of defaulter in his demat "shall stand attached so as to enable respondent to recover amounts due from defaulters".

Recently, Sebi had ordered certain banks to attach joint accounts of the couple as they had defaulted on the penalties imposed for irregularities in initial public offerings (IPOs) of various firms between 2003-05.

Following this, they had challenged the Sebi order before the tribunal.
Sebi had imposed a penalty of over Rs 6 crore on Dushyant and Puloma for cornering shares reserved for retail investors in the IPOs of IDFC, Suzlon Energy, Shoppers Stop and Provogue India, among others.