SEBI starts attachment proceedings in 200 cases, including MPS Greenery, Pyramid Saimira

SEBI has already initiated attachment proceedings against 200 entities including MPS Greenery, Pyramid Saimira for recovery of investor money as well as to collect long-pending penalties for various market related defaults

Market regulator Securities and Exchange Board of India (SEBI) has initiated attachment proceedings in about 200 cases for recovering investors' money and unpaid penalties from various defaulters.


As part of its recovery proceedings, the regulator has served orders to various banks to attach the accounts of those who have not paid penalties imposed on them for violations of various securities market regulations.


These include freezing of bank accounts for recovery of funds totalling nearly Rs1,550 crore, which includes over Rs1,500 crore for one single case involving an illegal collective investment scheme (CIS) in West Bengal.


In this case, SEBI has ordered attachment of over 50 bank accounts of MPS Greenery Developers for recovery of Rs1,520 crore, along with applicable returns, collected from investors through its illegal schemes.


SEBI has also issued notices for attachment of bank accounts in other matters, including Pyramid Saimira case of 2012 and IPO fraud of 2003-2005.


Besides, the recovery proceedings have been initiated against many entities for their failure to make the penalties imposed on them for various securities market violations.


As on June 2013, penalties worth around Rs121 crore were pending from over 1,300 individuals and entities. Some of the penalties are pending for over a decade.


The proceedings have been launched in a period of little over a month and have been initiated as part of SEBI's new powers to order freezing of bank accounts, attachment of properties, conduct of search and seizure operations and launch of recovery proceedings.


The markets regulator is also holding consultation with Central Bureau of Investigation (CBI), Tax Department, Enforcement Directorate (ED) and other investigative and enforcement agencies to beef up its own competence in exercising newly granted powers.


SEBI has also set up a separate recovery department under its enforcement division to carry out recovery proceedings and other search and seizure operations.


Besides, bulk of new staff being hired by SEBI, including 75 officers in recently initiated recruitment drive, would be used for such roles.


Beginning late September, SEBI has already initiated close to 200 attachment proceedings for recovery of investor money amassed through illicit schemes, as also of long-pending penalties for various market related defaults.


Through an ordinance promulgated by the government, SEBI has been given direct powers to freeze bank accounts, attach properties, conduct search and seizure and initiate recovery proceedings. To replace this ordinance, the Securities Laws (Amendment) Bill, 2013 is expected to be presented before Parliament in the next session. The ordinance has already been promulgated twice, the last being in September.


SEBI has been seeking these powers for long to better regulate markets and take to task the fraudsters and other defaulters more effectively. Soon after the promulgation of the ordinance, SEBI began exercising these powers and has put in place necessary operational mechanism, including those requiring changes in the manpower deployment.




3 years ago

There are many public listed companies who have fraudulently siphon of public money by showing losses and fake book entries, will SEBI able to recover money from them ?

Mohana Ganesh

3 years ago

Where can one find out the list of companies against whom SEBI has taken action i.e. attachment proceedings?

SBI too hikes base rate, benchmark PLR by 0.2%

With SBI, the country's largest bank, increasing its base rate, other state-run lenders may also go in for a hike in lending rates

Taking a cue from HDFC Bank, the country's largest lender State Bank of India (SBI) has hiked its base rate by 20 basis points or 0.2% to 10% from 9.8%. The state-run lender also hiked its benchmark prime lending rate (BPLR) by 20 basis points to 14.75%. The rate hike is applicable from 7th November, SBI said in a release.


Last month, Reserve Bank of India (RBI) had increased the key policy repo rate by 25 bps to 7.75% citing higher inflation concerns. This would increase the cost of borrowing for banks.


Following this, HDFC Bank, the country's second largest private bank, had raised its base rate by 20 bps to 10%, effective from 2nd November.


Suprajit Engineering hits 52-week high on record sales in October

Suprajit Engineering, India’s largest automotive cable maker records all time highest sales during October 2013 at Rs53 crore, an increase of 26%

Suprajit Engineering Ltd shares hit its 52-week high of Rs39.8 on the BSE as the company reported record sales across all segments during October. Suprajit Engineering said is total sales increased 26% to Rs53 crore in October due to increased demand during the festival season.

“The gloomy outlook witnessed in quarter one seem to have changed with a good quarter two and now a sparkling October. Feedback from the customers and internal debate leads us to believe that the worst maybe over for the automotive sector and that coming quarters’ including quarter three performance is expected to be robust,” said K Ajith Kumar Rai, chairman and managing director.

Its non automotive export surpassed Rs3 crore and after market sales of equipments and accessories increased by 48% at Rs5.70 crore compared with 3.85 crore, a year ago period.

Suprajit, an auto ancillary company, have a 100% export oriented subsidiary—Suprajit Automotive Ltd—which recorded 94% growth in sales at Rs5.16 crore for the month of October 2013 as compared with Rs2.65 crore in a year ago period. Suprajit over all sales increased by 27% at Rs60 core including its export oriented subsidiary sales.

Suprajit is India’s largest automotive cable maker having annual capacity of 150 million cables. It also has 15 facilities—one tech centre in United Kingdom and 14 plants in India. Suprajit supplies raw materials and cables to most Indian automotive majors and exports to many global customers.

Moneylife earlier wrote about suprajit Engineering Ltd that, Hefty dividends and rising share price of Suprajit Engineering make its shares a fine 'buy' choice. What makes the company outperform the industry?

On Wednesday, Suprajit Engineering closed 5.1% up at Rs39.40 on BSE, while benchmark Sensex closed marginally down at 20,889.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)