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Business News/ Markets / Stock Markets/  Sebi orders attachment of bank, demat, MF accounts of Rainbow Industries, directors
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Sebi orders attachment of bank, demat, MF accounts of Rainbow Industries, directors

Markets regulator Sebi has ordered attachment of bank accounts as well as share and mutual fund holdings of Rainbow Industries and Constructions and its two directors to recover over ₹11 crore

Rainbow Industries had raised ₹11.36 crore through redeemable preference shares (RPS) from investors without complying with public issue norms (Photo: Reuters)Premium
Rainbow Industries had raised 11.36 crore through redeemable preference shares (RPS) from investors without complying with public issue norms (Photo: Reuters)

NEW DELHI : Markets regulator Sebi has ordered attachment of bank accounts as well as share and mutual fund holdings of Rainbow Industries and Constructions and its two directors to recover over 11 crore.

The recovery proceedings were initiated against the company and its directors after they failed to comply with Sebi's order.

The Securities and Exchange Board of India (Sebi) in November 2018 had directed the company and its directors to refund investors' money along with interest.

Rainbow Industries had raised 11.36 crore through redeemable preference shares (RPS) from investors without complying with public issue norms.

Rainbow issued RPS to 5,379 persons amounting to 6 crore during 2011-12. For the period 2012-13, it allotted RPS worth 5.36 crore to 4,673 persons.

In an attachment notice issued on Friday, Sebi asked banks and depositories not to allow any debit from the accounts of Rainbow Industries and its directors Nidhi Yogendra and Dhiren Rawani. However, credits have been permitted.

Further, the capital markets watchdog has directed the banks to attach all accounts, including lockers, held by the defaulters.

The regulator said there is sufficient reason to believe that the defaulter 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".

In a separate notice, the regulator has ordered attachment of bank and demat accounts of Narendra Vallabhji Bahuva to recover dues totalling 5.73 lakh.

A fine of 5 lakh was imposed on him for violating securities market norms in the matter of Octant Interactive Technologies Ltd.

The pending dues -- 5.73 lakh-- include the initial fine amount of 5 lakh, interest of over 72,000 and a recovery cost of 1,000. PTI SP ANU ANU

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Published: 09 Nov 2020, 02:22 PM IST
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