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Sebi releases exhaustive list of over 2,000 defaulters' names

SBI Capital, Axis Capital, GMR Holdings, United Breweries among those that have not paid Sebi penalties

Shrimi Choudhary  |  Mumbai 

Sebi. (Photo: Kamlesh Pednekar)
Sebi. (Photo: Kamlesh Pednekar)

The (Sebi) on Tuesday released an exhaustive list of entities that have defaulted on payment of penalties imposed by the market regulator for violation of various securities norms.

SBI Capital, Axis Capital, GMR Holdings, United Breweries, Alpic Finance (a Cipla group unit), Saradha Realty, and Trident India are among the prominent entities named in the list.

According to the Sebi data, as on February 7, total number of defaulters was 2,183, including both individuals and companies against whom the watchdog has passed adjudication orders. Some of the cases date back to 1998. The amount of penalty imposed varies between Rs 15,000 and Rs 100 million.

These entities have been charged with issues such as failing to redress investor grievances, breaching of disclosure norms, collective investment schemes norms and insider trading norms. In some cases, the regulator has initiated recovery proceeding and has attached assets to recover dues. Non-payment of dues in cases like Saradha Realty India, Rose Valley Real Estate and Pearl Agrotech Corporation is on account of pending appeals before various courts.

“The list is significant and informative. With this data, public or investors at large be cautious to deal with such persons and entities. This will also help banks to locate these persons if they owe to lenders. Sebi should also coordinate with the tax department so that they can trace their permanent account numbers (PAN) and freeze all their demat accounts for fast recovery, “said J N Gupta, managing partner, SES — a proxy firm. The Sebi Act provides for attachment of assets and even arrest of individuals who fail to pay dues to Sebi.

Recently, a Sebi’s special court has sentenced three years imprisonment to stock broker Ketan Parekh for non-payment of dues to Sebi. The court also directed Parekh to pay Rs 5,00,000 as fine, part of which will have to be paid to Sebi. Due to the non-payment of the penalty, criminal proceedings at the special court were initiated.

First Published: Tue, April 03 2018. 22:35 IST