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Market watchdog SEBI has ordered attachment of bank and demat accounts of four entities to recover dues worth about Rs 30.66 lakh in a case related to fraudulent trading in shares of Hit Kit Global Solutions.
Securities and Exchange Board of India (SEBI) has to recover Rs 11.38 lakh from Jayesh C Shah, Rs 8.55 lakh from one Jaiprakash Jain, Rs 7.17 lakh from Galaxy Broking and Rs 3.54 lakh from Shree Hari Hira Stock Broking.
The dues include penalties imposed on the entities for violating norms related to prohibition of fraudulent trading activities in the capital market.
It was found by SEBI that Shah and Jain had executed synchronised trades in shares of Hit Kit Global Solutions that had created artificaila volume in the scrip of the company as well as had manipulated its share-price.
Besides, Galaxy Broking and Shree Hari Hira Stock Broking had aided and abetted their clients in the manipulative activity thereby violating prohibition of fraudulent trading norms as well as stock brokers rules.
In four separate attachment orders dated July 7, SEBI has asked banks to attach all accounts including lockers held by the entities.
Similarly, the regulator has directed depositories - NSDL and CDSL - to attach all demat accounts of the defaulters.
SEBI informed the banks and the depositories that there was “sufficient reason” to believe that defaulters may dispose of the amounts in the accounts and “realisation of amount due under the certificate would in consequence be delayed or obstructed”.
The regulator 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 the banks and depositories that with immediate effect no debit would be made in these accounts until further directions from the market regulator. However, the credits, if any into the account maybe allowed, SEBI said.
The watchdog has also asked for various details of the accounts held by the entities including account statements.
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