“This recovery proceeding has been initiated against them to recover ₹1,006.70 crore collected by the company through the issuance of non-convertible debentures to investors,” the SEBI mentioned.
“This recovery proceeding has been initiated against them to recover ₹1,006.70 crore collected by the company through the issuance of non-convertible debentures to investors,” the SEBI mentioned.
Markets regulator Securities and Exchange Board of India (SEBI) has ordered attachment of financial institution accounts in addition to shares- and mutual fund holdings of Rose Valley Hotels and Entertainment Limited and its then administrators to recuperate traders’ dues totalling greater than ₹1,000 crore.
“This recovery proceeding has been initiated against them to recover ₹1,006.70 crore collected by the company through the issuance of non-convertible debentures (NCDs) to investors,” the SEBI mentioned in an attachment discover on June 6.
In its discover, SEBI requested banks, depositories and mutual funds to not permit any debit from the accounts of Rose Valley and its then administrators — Gautam Kundu, Ashok Kumar Saha, Shibamoy Dutta and Abir Kundu. However, credit have been permitted. Further, the markets watchdog has directed all banks to connect all accounts, together with lockers, held by the defaulters.
“There is sufficient reason to believe that the defaulters may withdraw the amounts/dispose of the securities in the accounts held with you and realisation of amount due under the certificate would in consequence be delayed or obstructed,” SEBI noted.
“In order to guard the curiosity of traders, it’s essential to connect the property of the defaulters together with bank-, demat accounts and mutual funds funding to forestall any alienation of the identical,” it added.
In November 2017, the regulator had ordered Rose Valley and its then administrators to refund 1000’s of crores to the traders who had parked cash in vacation membership plans of the group because it declared these schemes as unlawful. Besides, they had been barred from the markets for 4 years. According to the regulator, the varied plans provided by the agency with a promise of return qualify as a Collective Investment Scheme.
Source: www.thehindu.com
