New Delhi : Markets regulator Sebi launched 614 proceedings against the entities which defaulted on payment of penalties in 2015-16 and recovered dues worth over Rs 224 crore.
In comparison, the number of attachment proceedings initiated by the Securities and Exchange Board of India (Sebi) in 2014-15 stood at 1,619.
These proceedings involve attachment of bank accounts, lockers, shares and debentures, among others.
The move comes after entities failed to pay penalties imposed on them for violations of various securities market regulations.
Sebi is empowered to recover money from persons who fail to pay the penalty imposed by adjudicating officers or fail to comply with any direction of the board for refund of money or any violation of the disgorgement order.
“During 2015-16, Sebi recovered Rs 224.6 crore under its recovery mechanism as compared to Rs 19.2 crore recovered during 2014-15,” according to the market regulator’s annual report.
Further, the markets watchdog said, recovery proceedings were completed in 80 cases last fiscal and all of them were non-CIS cases, as against 121 in the previous year.
Besides, Sebi passed as many as 12 interim orders and 33 final orders last fiscal against entities found to be carrying out unauthorised collective investment schemes (CIS).
The interim directions restrained the companies and their directors from collecting any fresh money under its existing schemes as well as launching any new schemes among others.
The final orders directed the firms and their directors to wind up its existing CIS and make repayments to investors within a specified time period.
PTI