Sebi issues recovery orders against Coimbatore Flavors

Sebi today ordered attachment of bank accounts as well as demat accounts of Coimbatore Flavors and Fragrances and its former promoter to recover pending dues worth Rs 4.38 lakh from them.
The Securities and Exchange Board of India had imposed a fine Rs 2 lakh each on Coimbatore Flavors and Fragrances and its former promoter Benny Abraham for delay in making relevant disclosures related to the company's shareholding for the financial year ended March 31, 2012.
However, the company and Abraham failed to pay the penalty amounts along with interest and other costs to Sebi.
Accordingly in two separate attachment orders today, the Securities and Exchange Board of India (Sebi) has asked banks to attach all accounts including lockers held by the entities.

Similarly, the regulator has directed depositories - NSDL and CDSL -- to attach all demat accounts of the defaulters.
Sebi told the banks and the depositories that there was "sufficient reason" to believe that defaulters may dispose of the amounts in the accounts and "realisation of amount due under the certificate would in consequence be delayed or obstructed".

The regulator 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.
The watchdog has also asked for various details of the accounts held by the entities including account statements.