The market regulator has ordered freezing of demat and bank account of one Ashok Bhagat to recover Rs97 lakh in the Empower Industries case
Market regulator Securities and Exchange Board of India (SEBI) has ordered attachment of bank and demat accounts of one Ashok Bhagat to recover dues worth about Rs97 lakh in Empower Industries India Ltd case.
The dues include penalty worth Rs82 lakh imposed on Bhagat by SEBI in January last year on charges of violating capital market norms in the matter of Empower Industries.
In an attachment order dated 11 July 2014, SEBI has asked banks to attach all accounts, including lockers held by him.
Similarly, the regulator has directed depositories - NSDL and CDSL -- to attach all demat accounts of the defaulter.
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 him, including account statements.
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