Mumbai: Sebi has ordered attachment of banking and de-mat accounts of Pyramid Saimira Theatre's four directors to recover penalties worth Rs 1.55 crore that was slapped on them for manipulating capital markets. The Securities and Exchange Board of India (Sebi) had imposed a penalty of Rs 50 lakh on the firm's whole time director N Narayanan, Rs 40 lakh each on K Natarahjan and K S Kashiraman and Rs 25 lakh on G Ramakrishan.
The directors were found to be involved in publication of false and misleading financial results of the Pyramid Saimira. Recently, armed with powers to recover penalties from defaulters, Sebi in an attachment notices dated May 27 has directed the banks to attach accounts held by the directors. Besides, Sebi has asked depositories -- NSDL and CDSL -- to attach demat accounts of securities held by the defaulters. In the notices to the banks and depositories, Sebi has said that it had "sufficient reason" to believe that the defaulters may dispose of the amount and securities held in the bank and demat accounts respectively.
This, Sebi said, could result in delay and obstruction in realising the amount. Accordingly, 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 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. Sebi has also asked for details of the accounts held by the four, copy of their account statements, among others.
