Sebi issues attachment order to recover Rs 65 lakh penalties

Sebi has ordered attachment of bank and demat accounts of Alka Securities and 4 entities, including the company's MD, to recover penalties worth Rs 65 lakh that was imposed on them for violating capital market norms.
Securities and Exchange Board of India (Sebi) in its orders between 2010-2011 had imposed a penalty of Rs 10 lakh each on -- Alka Securities, Brijesh Kothari, Mitesh Jagdish Jani and Mahesh Kothari Shares and Stock Brokers.
Besides, it had slapped Rs 25 lakh on Securities promoter and managing director Alka Pandey.
Exercising its recent powers to recover penalties from defaulters, Sebi in an attachment notices released today has directed various banks in the country to attach accounts held by the entities.

Besides, Sebi has asked depositories -- NSDL and CDSL -- to attach demat accounts of securities held by the entities.
In the notices to the banks and depositories, Sebi has said that it had "sufficient reason" to believe that the defaulters may dispose of the amount and securities held in the bank and demat accounts respectively.

Accordingly, Sebi has ordered banks and depositories to attach "all accounts by whatever name called of the defaulter, either singly or jointly with any other persons".
Sebi has also asked banks to attach the lockers held by the entities as well as "all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter".

It has further ordered the banks and depositories that with immediate effect no debit would be made in these accounts until further directions from the market regulator. However, the credits, if any into the account maybe allowed, Sebi said.
Sebi has also asked for details of the accounts held by the enties, copy of his account statements, among others.
The regulator had found that Alka Securities, its MD and company's director Brijesh Kothari had made false disclosures.
Meanwhile, Mitesh Jagdish Jani and Mahesh Kothari Shares and Stock Brokers had failed to provide information to the market regulator for its probe into Alka Securities shares.

In March, the president of India had re-promulgated the ordinance for the third time that provides more powers to Sebi including attachment of assets in cases of non-compliances.