In the RTS Corporation case, Sebi orders the seizure of an individual’s bank and dematerialized accounts |
Capital markets regulator Sebi has ordered the seizure of bank accounts as well as stock and mutual fund holdings of an individual to recover more than Rs 22 lakh in the RTS Corporation case.
The collection proceeding against Mukesh G Konde for Rs 22.61 lakh, includes additional interest, all fees, charges and expenses, Sebi said in an attachment order issued on Tuesday.
In his notice, Sebi asked all banks, custodians and mutual funds not to allow any debits on Konde’s accounts. However, the credits were authorized.
In addition, the markets watchdog ordered all banks to seize all accounts, including lockers held by defaulters.
There is sufficient reason to believe that the defaulter may dispose of the securities in the account held by you and that realization of the amount due under the certificate would be delayed or hindered accordingly.
In order to protect the interests of investors, it is necessary to seize the defaulters’ assets, including bank accounts, demat and mutual fund investments, to prevent any alienation thereof, he added. .
In June 2016, the regulator imposed a fine of Rs 90 lakh on Konde and eight other entities in a case involving inauthentic transactions in the certificates of RTS Power Corporation.
Three people were found to have purchased shares in the company on February 11, 2009 and failed to meet their respective payment obligations.
In addition, certain other individuals had entered into fictitious transactions with defaulting clients related to them and had aided the defaulting clients in undermining the integrity of the securities market.
One of the defaulting clients was Mukesh G Konde.
Meanwhile, in another seizure order, the regulator ordered the bank and dematerialized accounts of Edelweiss Estates Pvt Ltd to recover more than Rs 5 lakh in the case of the GDR issue of six companies.
The recovery proceeding was initiated against Edelweiss Estates Pvt Ltd (now known as Edelweiss Research Pvt Ltd) after it failed to pay the fine imposed by the Securities and Exchange Board of India (Sebi) in June 2021.
The pending dues of Rs 5.66 lakh include the initial amount of penalty, interest and collection costs.