Sebi orders attachment bank, demat accounts of 10 companies

Markets regulator Sebi has ordered attachment of bank and demat accounts as well as mutual fund folios of 10 firms to recover dues amounting to Rs 1.23 crore.
Sebi's rulings with regard to the 10 companies have come after they failed to pay the fines imposed on them by the regulator in April 2003 for violating securities regulation in the matter of Shonkh Technologies International.
In April 2003, the regulator had imposed a penalty of Rs 6.50 lakh each on six firms -- Triumph Securities, Panther Investrade, Panther Fincap and Management Services, Classic Credit, Triumph International Finance India and Luminant Investments.

On the remaining four -- NH Securities, Netscape Software, Gibs Computers and Chat Computers -- Sebi had levied a fine of Rs 1.50 lakh each.
As per 10 separate attachment notices dated September 21 on Sebi's website, in case of the firms which were fined Rs 6.50 lakh each, the pending dues stand at Rs 1,06,58,022.
The dues include the initial cumulative fine of Rs 39 lakh, a 12 per cent per annum interest on it from April 2003 till September 2017, amounting to Rs 67,52,022 and a recovery cost of Rs 6,000.

With regard to the companies which were penalised Rs 1.50 lakh each, the due amount is Rs 16,42,772.

The charges comprise an initial total fine of Rs 6 lakh, a 12 per cent per annum interest on it from April 2003 till September 2017, amounting to Rs 10,38,772 and a recovery cost of Rs 4,000.
Through the similarly worded notices, Sebi has directed the banks to attach all accounts, including lockers held by the firms.
Also, the regulator has directed the depositories -- NSDL and CDSL -- and the mutual funds in India to attach all demat accounts and the mutual fund folios of the companies.
Sebi has the powers to attach properties and bank accounts, among other things, of entities which have failed to comply with the regulator's directions involving payment of penalties and other dues.