Sebi orders attachment of demat, bank accounts of 5 entities

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Market watchdog Sebi has ordered the attachment of bank and demat accounts of five entities to recover dues totalling over Rs 7 lakh in several cases.

The dues include penalty imposed on these entities by Securities and Exchange Board of India (Sebi) on charges of violating capital market norms. All the entities have dues worth over Rs 1 lakh each.

These attachment orders were issued yesterday but published on Sebi's website today.

In five separate attachment orders, Sebi has asked banks to attach all accounts, including lockers held by these entities.

Similarly, the regulator has directed depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.

The regulator has directed to freeze the demat and bank accounts of Mahesh Bissa for recovering dues worth Rs 1.28 lakh in the matter of SKS Logistics, while Sebi has ordered attachment of bank and demat accounts of Chetan Mehta to recover Rs 1.43 lakh in Chamatkar.Net (India) Ltd case.

Among other entities against whom Sebi has issued attachment orders are Xedd Telecom Ltd to recover Rs 1.61 lakh, Cauvery Software Engineering Systems Ltd (Rs 1.6 lakh) and Lan Eseda Industries Ltd (Rs 1.09 lakh).

Sebi informed the banks and the depositories that there was "sufficient reason" to believe that defaulter may dispose of the amounts in the accounts and "realisation of amount due under the certificate would in consequence be delayed or obstructed".

Similarly, the regulator has directed depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.

Sebi informed the banks and the depositories that there was "sufficient reason" to believe that defaulter 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 also asked banks to attach the lockers held by him 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 may be allowed, Sebi said.

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

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