Markets regulator SEBI has mandated the bank and Demat accounts of Alchemist Holdings and three individuals to recover investors’ money amounting to Rs 444.67 crore.
The recovery proceedings have been prompted against the entities after failing to refund investors money as directed by the Securities and Exchange Board of India (SEBI).
The regulator, in August 2015, had asked Alchemist Holdings and its directors to refund investors’ money. The company had mobilised Rs 444.67 crore through the issuance of redeemable preference shares to 4.26 lakh people.
In an attachment notice on Thursday, SEBI has asked banks and depositories not to allow any debit from Alchemist Holdings accounts and three individuals– Brij Mohan Mahajan, Vikramaditya Singh, and Chadra Shekhar Chauhan. However, credits have been permitted.
Further, the regulator has directed the banks to attach all accounts, including lockers, held by them.
SEBI said there is intense apprehension that the defaulters may dispose of the securities in the Demat accounts or mutual funds folio and “realisation of the amount due under the certificate would, in consequence, be delayed or obstructed.” In a notice to all banks in the country, the regulator ordered to “attach with immediate effect… all accounts by whatever name, including lockers of the defaulters, held either singly or jointly with any other person, in your bank”.
The regulator has also asked banks and depositories to provide details of all accounts held by defaulters, including a copy of account statements for the past year. It has also sought complete information of all loan accounts and advances.