SEBI attaches demat, bank accounts of individual in Acclaim Industries case

The Securities and Exchange Board of India (SEBI) on Thursday ordered attachment of bank accounts as well as share and mutual fund accounts of an individual to recover investors' dues totaling ₹73.58 lakh in the matter related to trading in Acclaim Industries shares.

The recovery proceedings against Abhishek Mehta for ₹73.58 lakh includes interest of 12 per cent per annum i.e. ₹38.82 lakh (August 2012 to November 2021), all costs, charges and expenses, Sebi said.

In its notice, SEBI asked banks, depositories and mutual funds not to allow any debit from the accounts of Mehta. However, credits have been permitted.

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

There is sufficient reason to believe that the defaulter may dispose of the securities in the account held by you and realisation of amount due under the certificate would in consequence be delayed or obstructed, Sebi said.

In order to protect the interest of investors, it is necessary to attach the assets of the defaulters, including bank, demat accounts and mutual fund investments, to prevent any alienation of the same, it added.

In December 2018, the regulator directed Mehta to disgorge the wrongful gain of ₹34.74 lakh along with further interest of 12 per cent per annum from August 2012 till the date of payment.

According to SEBI, Mehta changed his shareholding after the company's board approved the proposal of the firm's merger with Database Software Technology (DSTP) in January 2012.

Further, the board decided not to merge the firm with DSTPL.

However the decision was not informed to the exchange.

Moreover, the information was misleading as the decision of cancellation of merger was already taken in earlier months, SEBI said.

Mehta being managing director of the firm made misleading announcements and had knowledge of the company's decision of cancellation of merger.

Besides, by selling shares and reducing his shareholding, Mehta was trading when in possession of Unpublished Price-Sensitive Information (UPSI), thereby violating PIT (Prohibition of Insider Trading) norms.

The period of UPSI was from February 06, 2012 to December 26, 2012.