Recovery proceedings against Shivi Holdings have been initiated to recover Rs 5.35 crore including interest, all costs, charges and expenses etc.
In its notice, Sebi asked all banks, custodians and mutual funds not to allow any debits from Shivi Holdings accounts. However, credits are allowed.
The market watchdog has also ordered all banks to seize all accounts, including safety deposit boxes, of all defaulters.
Last month, Sebi had ordered banks and custodians to seize bank and demat accounts of former promoters of Religare Enterprises – Shivinder Mohan Singh and four other entities to recover Rs 32.10 crore in the same case.
The entities are — Malav Holdings, RHC Holding, ANR Securities and Religare Corporate Services (now known as Finserve Shared Services). They were also the former promoters of REL.
The case relates to the diversion of funds amounting to Rs 2,473.66 crore from Religare Finvest Ltd (RFL), a subsidiary of Religare Enterprises Ltd (REL), during FY 2014-15 to FY 2017-18, in the form of loans through tiers of entities for the ultimate benefits of entities controlled by the former promoters — Singh brothers.
Sebi noted that these diverted funds never made it back to RFL.
The misuse of funds was never disclosed to REL’s shareholders, misleading them into staying invested in REL’s stock or trading in REL’s securities. Thus, the apparent diversion of funds led to indirect manipulation of the price of shares of REL, Sebi said in his order.
By engaging in such acts, they violated the provisions of the PFUTP (Prohibition of Fraudulent and Unfair Business Practices) standards.
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