Markets regulator Sebi has ordered attachment of bank accounts, share and mutual fund holdings of ATM Agro Industries and Sunshine Agro Infra as well as their directors as part of its effort to recover over Rs 21 crore.
Sebi asked banks and depositories not to allow any debit from the accounts of these defaulters.
Markets regulator Sebi has ordered attachment of bank accounts, share and mutual fund holdings of ATM Agro Industries and Sunshine Agro Infra as well as their directors as part of its effort to recover over Rs 21 crore. The recovery proceedings have been initiated against them after they failed to repay investors’ money, as directed by the Securities and Exchange Board of India (Sebi) in 2016. The two companies had raised funds from investors without complying with public issue norms.
ATM Agro Industries garnered funds illegally through issuance of redeemable preference shares (RPS) and secured redeemable non-convertible debentures (NCD). As per Sebi, the company had raised Rs 5.62 crore by issuing RPS to 300 investors. It had also collected Rs 15.62 crore from at least 1,232 people. These funds were raised between 2011-12 and 2012-13. Sunshine Agro Infra had raised funds by issuing RPS to investors in 2011-12.
The pending dues stand at Rs 21.24 crore for ATM Agro Industries and Rs 12.68 lakh for Sunshine Agro Infra. In two separate attachment notices issued on Tuesday, Sebi asked banks and depositories not to allow any debit from the accounts of these defaulters. However, credits have been permitted. Further, the capital markets watchdog directed banks to attach all accounts, including lockers, held by the defaulters.
The regulator said there is sufficient reason to believe that the defaulters may dispose of the amounts in bank accounts and securities in demat accounts and “realisation of amount due under the certificate would in consequence be delayed or obstructed”. Separately, the regulator ordered attachment of bank, demat accounts as well as mutual fund folios of five entities — Pepson Steels, Stream Suppliers (formerly known as Finelink Suppliers ), Benko Traders, Suruchi Distributors and Blackcherry Commosale to recover Rs 56 lakh.
The pending dues include the initial fine amount, disgorgement amount, interest and recovery cost. The move comes after the entities did not pay the monetary penalty imposed on them for violating securities market norm in the matter of illiquid stock options on BSE.