Sebi orders attachment of bank, demat accounts in Ramkrishna Electro case


Sebi has ordered the attachment of bank accounts as well as share and mutual fund holdings of an individual to recover about Rs 18 crore in the matter of Shree Ramkrishna Electro Controls Ltd.

The recovery proceedings have been ordered against Chandrakant Bhargav Gole to recover Rs 5.74 crore collected by the company along with 15 per cent interest per annum i.e Rs 12.53 crore through the issuance of redeemable cumulative preference shares (RCPS) to investors, Sebi said in an attachment notice on Thursday.

Gole was the managing director of Shree Ramkrishna Electro Controls Ltd (SRECL) during the relevant period.

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

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

“There is sufficient reason to believe that the defaulter 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 said.

“In order to protect the interest of investors, it is necessary to attach all the assets of the defaulter including bank, demat accounts and mutual funds investment to prevent any alienation of the same,” it added.

In December 2021, the regulator had directed Gole to refund an amount of Rs 5.74 crore collected from the investors with an interest of 15 per cent per annum till the actual day of payment to the investors.

In addition, Sebi restrained Gole from the securities market and also barred him from associating with any listed public company for a period of 4 years from the date of completion of refunds to investors.

According to the regulator, SRECL had issued RCPS to a large number of investors during the period 2004-2010 and raised an amount of Rs 5.74 crore from the investors, violating public issue norms and DIP (Disclosure and Investor Protection) guidelines.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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