Sebi orders attachment of accounts in G-Tech Info case

Sebi has ordered attachment of bank accounts and securities of 7 entities so as to recover Rs 10000000 penalty slapped on them for failing to make a public announcement to acquire shares of G-Tech Info Training.In 2011, Sebi had imposed a total fine of Rs 10000000 on Prasad Tandel, Prakash D' Souza, Prashant Narvekar, Ashok Sonu Bhagat, Sicorp Finlease, Sandhya Shirish Shah and Pravina Chandrakant Shah.They had failed to make public announcement to shareholders of G-Tech Info Training even after the market regulator had directed them to do so.Armed with powers to deal with defaulters, the Securities and Exchange Board of India has recently begun directing attachment of bank accounts to recover penalties from entities that have violated capital market norms.In notices of attachment dated December 3, Sebi has asked various banks including Standard Chartered, Royal Bank of Scotland, ICICI Bank , to attach the bank accounts of the seven entities.Besides, Sebi has also issued notices to depositories -- National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), to attach the demat accounts of the seven entities.The banks and the depositories have been asked by Sebi not to allow any debit in these accounts until further orders. However, the regulator has allowed credits into the accounts.Sebi said it had "sufficient reason to believe that the defaulters may dispose of" the amounts and securities held in the banks accounts and demat accounts respectively.Among others, the regulator has also asked banks and the depositories "for all other accounts by whatever name called of the defaulter, either singly or jointly with any other persons".Sebi was recently granted powers to attach properties and bank accounts, among other things, of persons and entities which have failed to comply with directions involving payment of penalties and other dues.The market regulator has also asked banks to provide details of all accounts, including lockers held by the individuals, copy of account statements and confirmation of attachment of the said accounts.