Sebi has ordered attachment of bank and demat accounts of Flawless Diamond India Ltd and 10 other entities to recover penalties worth Rs 27.50 lakh that was imposed on them for violating capital market norms.
Individually, Sebi has to recover Rs 5 lakh from Flawless Diamond, Rs 4 lakh Jagdish R Jani, Rs 3 lakh each from Sethia Gems, Balasaheb Kamble and Manmohan Gems as well as Rs 2.50 lakh from Akhilesh Kamla Prasad.
It also has to recover fines of Rs 2 lakh each from Jalak Jain and Abhishek Jain, while three entities -- Hiren Kirit Gandhi, Dinesh Kumar Pandey, Dilip Pawar -- have to pay Rs 1 lakh each.
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All the entities had been penalised in the matter related to Flawless Diamond India Ltd.
Exercising powers to recover penalties from defaulters, Sebi in attachment notices released today has directed the banks to attach accounts held by these entities.
Besides, Sebi has asked depositories -- NSDL and CDSL -- to attach demat accounts of securities held by the defaulters.
In the notices to the banks and depositories, Sebi has said it had "sufficient reason" to believe that the defaulters may dispose of the amount and securities held in the bank and demat accounts respectively. This Sebi said could result in delay and obstruction in realising the amount.
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 entities, copy of account statements, among others.
