Mumbai, Jun 20 : Capital market regulator Sebi has ordered attachments of bank accounts and demat accounts held by Rajesh Services Centre and Krishna Enterprises to recover pending dues worth about Rs 42.7 lakh from them in a matter related to irregularities in IPO of Edserv Softsystems. The Securities and Exchange Board of India (Sebi) has to recover Rs 21.34 lakh each from Rajesh Services Centre and Krishna Enterprises which includes penalties imposed on them as well as interests.
The penalties on the two entities were imposed by the regulator on November 26, 2013 for aiding and abetting Edserv Softsystems in siphoning off funds from the company’s IPO. Sebi in two attachment notices dated June 18 has ordered the banks to attach accounts held by the entities. Besides, Sebi has asked depositories — NSDL and CDSL — to attach demat accounts of securities held by the defaulters.
Sebi has informed the banks and the depositories that it had “sufficient reason” to believe the defaulters may dispose of the amount and securities held in their bank and demat accounts which in turn could result in delay and obstruction in realising the dues. Consequently, Sebi has ordered banks and depositories to attach “all accounts by whatever name called of the defaulter, either singly or jointly with any other persons”. Sebi has also asked banks to attach the lockers held by the entities as well as “all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter”.
It has further ordered no debit from the accounts until further directions from the market regulator. However, the credits, if any into the account maybe allowed, Sebi said. Sebi had observed that the entities who received the funds from Edserv Softsystems, had in collusion with the firm acted as layers in transferring the certain amount of funds to Mahadev Impexs, Shiv Impexs, S K Alloys and Trading and Ramco International.