Sebi orders attachment of bank, demat accounts of Rhine and Raavi Credits & Holdings, 3 others

Sebi orders attachment of bank, demat accounts of Rhine and Raavi Credits & Holdings, 3 others

Markets regulator Sebi has ordered attachment of bank as well as demat accounts of Rhine and Raavi Credits & Holdings and three individuals to recover Rs 1.21 crore.

The recovery proceedings have been initiated against the entities after they failed to pay fine totalling Rs 1 crore imposed on them in March 2018. The fine was levied as they failed to return investors’ money as directed by Sebi.

In March 2015, the Securities and Exchange Board of India (Sebi) had directed the firm and its directors to refund over Rs 36 crore raised from investors along with interest.

Besides, the entities were banned from accessing the securities market for at least four years.

A probe by the regulator had found that the company had raised a little over Rs 36 crore by issuing Non-Convertible Redeemable Debentures (NCDs) to more than 700 investors without complying with the public issue norms.

The pending dues — Rs 1.21 crore — include the initial fine amount, interest and recovery cost, Sebi said in an attachment notice issued on Wednesday.

In the notice, Sebi asked banks and depositories to not allow any debit from the accounts of Raavi Credits & Holdings and three individuals — Rakesh Gupta, Birendra Kaji and Surendra Kumar. 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 amount 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 five separate attachment notices issued on Thursday, Sebi ordered attachment of bank and demat accounts of five entities to recover Rs 49 lakh.

These five entities are Tarang Stock Broking services, Sarthak Sales, Shiv Parvati Leasing, Emerald Commercial, Bajrang Steel and Alloys and Specie Finance (earlier known as Hora Finance Investment).

The action has been taken against them after the entities failed to pay the fine imposed on them during May-August 2019 for violating securities market norms in the matter of illiquid stock options.

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