Sebi orders attachment of bank, demat accounts of 6 individuals to recover Rs 5.8 cr

Markets regulator Sebi has ordered attachment of bank and demat accounts of six individuals to recover dues totalling Rs 5.8 crore.
Mansoor Rafiq Khanda, Firoz Rafiq Khanda, Ankit Rajendra Sanchaniya, Chirag Rajnikant Jariwala, Sunnyside Trading (formerly known as Annex Tradelinks) and Arun Pathak are the defaulters.

Recovery proceedings have been initiated against Khandas after they failed to disgorge Rs 5 crore as directed by the Securities and Exchange Board of India (Sebi).


In June 2018, the regulator had directed Mansoor and Firoz to disgorge unlawful gains (Rs 3.84 crore) along with interest (Rs 1.20 crore) in a case related to providing investment advisory services without obtaining registration from Sebi.

Mansoor and Firoz provided 'investment advice' to their clients in the securities market during April 2013 to June 2014 for a consideration and promised guaranteed returns on investments, as per Sebi order.

Sebi initiated recovery proceeding against the other four individuals after they failed to pay the fines imposed on them in different matters.

The fines were imposed by the capital markets watchdog during February-December 2019 for violating provisions of securities market norms.

The total pending dues of Rs 5.8 crore include the initial fine amount, disgorgement amount, interest and recovery cost.

In five separate attachment notices issued on November 19-24, Sebi asked banks and depositories not to allow any debit from the accounts of these six defaulters. However, credits have been permitted.

Further, the capital markets watchdog directed 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".