KKDIL had raised over Rs 35 lakh from 10,289 investors between 2011-2013 without complying with public issue norms. In an attachment notice on Tuesday, Sebi ordered attachment of bank as well as demat accounts of KKDIL and others to recover the pending dues.
Sebi asked banks and depositories not to allow any debit from the accounts of these entities. However, credits have been permitted. Further, the capital markets watchdog has directed the 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 the bank accounts and securities in the demat accounts and “realisation of amount due under the certificate would in consequence be delayed or obstructed”.
In October 2016, Sebi had ordered KKDIL Nidhi,and its directors to refund investors’ money, along with an interest of 15 per cent per annum , within three months.
Besides, the firm and its directors were restrained and prohibited from buying, selling or otherwise dealing in the securities markets for four years and further Sebi had said the ban would continue till the completion of refunds to investors.
Since the securities were issued by the firm to more than 50 people, it qualified as a public issue that requires compulsory listing on recognised stock exchanges. It was also required to file a prospectus, among other things, which it failed to do.