Sebi orders attachment of bank, demat accounts of individual
Sebi had slapped a penalty of Rs 1 crore on Jhunjhunwala for indulging in fraudulent trading.
New Delhi: Markets regulator Sebi has ordered attachment of bank and demat accounts as well as mutual fund folios of one Sudhir Jhunjhunwala to recover dues totalling over Rs 1.02 crore.
In June, the Securities and Exchange Board of India (Sebi) had slapped a penalty of Rs 1 crore on Jhunjhunwala for indulging in fraudulent trading in the shares of Gemini Communication.
The pending dues -- totalling Rs 1,02,50,863 -- include the initial fine of Rs 1 crore and 12 per cent per annum interest from the date of the regulator's June order till August 31, amounting to Rs 2,49,863 along with a recovery cost of Rs 1,000.
In an attachment notice dated September 4, Sebi has directed the banks to attach all accounts including lockers held by Jhunjhunwala. Also, the regulator has directed the depositories -- NSDL and CDSL -- and mutual funds in India to attach all demat accounts and mutual fund folios of the individual.
Sebi has been given powers to attach properties and bank accounts, among other things, of entities which have failed to comply with the regulator's directions involving payment of penalties and other dues.