Mumbai: The Securities and Exchange Board of India (SEBI) has issued notice to attach bank and demat accounts of the two group firms of the Sahara Group for violating regulatory norms in the issuance of optionally fully convertible debentures (OFCDs).
On February 1, Ashok Roy Choudhary, Ravi Shanker Dubey, and Vandana Bharrgava were ordered by the regulatory agency to have their bank accounts and demat accounts frozen.
In response to a fine of Rs. 6.48 crore imposed by the market regulator in an order dated June 27, 2022, SEBI has filed a notice of collection.
The recovery notice allegedly violated the SEBI's PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and ICDR (Issue of Capital and Disclosure Requirements) Regulations.
A recovery certificate of January 12, 2023, has been drawn up by the Recovery Officer for the recovery of a sum of Rs 6,48,01,000 towards the penalty imposed in the June 27, 2022 order in the matter of issue of OFCDS by Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Ltd, along with interest, all costs, charges and expenses in respect of all proceedings for recovering the sum.
SEBI's order to attach bank accounts
SEBI has also directed all banks to attach all bank accounts, including lockers, demat accounts and all mutual fund folios accounts of the four persons.
The restriction of all debit transactions from the accounts of these four people has been ordered by all banks, depositories, and mutual funds. The market regulator stated that credit transactions, if any, must be approved.
In order to recover Rs 6.42 crore in the case involving the violation of regulatory standards, SEBI had ordered the attachment of the bank and demat accounts of the Sahara Group company and its CEO Subrata Roy in December 2022.
Sahara India Real Estate Corporation, Sahara Roy, Ashok Roy Choudhary, Ravi Shanker Dubey, and Vandana Bharrgava were the targets of the recovery notice.
The SEBI fined Sahara India Real Estate Corp, Subrata Roy, Ashok Roy Choudhary, Dubey, and Bharrgava a total of Rs 6 crore in its order from June 2022.
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