Sebi directs banks to defreeze accounts of five entities

Market regulator Sebi today directed banks and depositories to defreeze bank and demat accounts of five entities after they paid penalties of around Rs 8 lakh imposed by the watchdog for violation of various norms.
The Securities and Exchange Board of India (Sebi), on January 15, ordered attachment of bank and demat accounts of these entities, in two different cases, to recover penalties imposed on them for violation of various securities law.
The market regulator had slapped a fine of Rs 6 lakh on Nithin Somani and Sonal Somani for violating securities norms in the matter of Hasti Finance.
Besides, Sebi had imposed penalty of Rs 75,000 on Avishek Bose, Rs 50,000 on JMD Telefilms and Rs 45,000 on Gulistan Vanijya for violation of securities regulations in Livingroom Lifestyle case.

"The entire amount due ... Has been recovered from the defaulters," Sebi said in four similar-worded orders today.
Consequently, Sebi directed various banks and depositories to release the bank and demat accounts of the defaulters.

In a separate order, the regulator also directed banks to defreeze the account of Dushyant Natwarlal Dalal and Puloma Dushyant Dalal.
The Securities Appellate Tribunal, through an order dated January 17, already lifted the attachment of the accounts of Dalals following the recovery of Rs 6 crore from them.
In October 2013, the regulator began passing attachment orders and launching recovery proceedings.
Since then, it has initiated at least 311 attachment proceedings in nearly 65 cases for recovery of investor money worth nearly Rs 2,000 crore amassed through illicit schemes, as also of long-pending penalties for various market-related defaults.

The grant of additional powers, which included freezing of bank accounts, attachment of properties, conduct of search and seizure operations and launch of recovery proceedings, was given to Sebi through an Ordinance.
While this ordinance has lapsed due to non-passage of a relevant bill in the Parliament, actions taken by Sebi till January 15 would remain valid and the recovery proceedings will continue in these cases, according to officials.
The government would have to either pass the bill in the next Parliament Session or promulgate the ordinance for third time at a later date for resumption of these powers to Sebi.

The ordinance to Sebi was first promulgated in July and for the second time in September last year.