SEBI initiates attachment proceeding against Alchemist Holdings for payment default
The entities failed to refund investors money despite directions of the market regulator
The Securities and Exchange Board of India (SEBI) has started recovery proceedings against Delhi-based Alchemist Holdings and its three directors.
The markets regulator issued an attachment notice on 1 April 2021 against the company and its three entities. Subsequently, banks and Demat accounts of Alchemist Holdings and three individuals, Brij Mohan Mahajan, Vikramaditya Singh and Chandra Shekhar Chauhan, were attached to recover investors money to the tune of ₹444.67 crore.
SEBI had asked Alchemist Holdings and its three directors to refund the investors money in August 2015 after the company had mobilised ₹444.67 crore through the issuance of redeemable preference shares to 4.26 lakh people.
Their failure to refund the money resulted in SEBI ordering attachment of their bank and Demat accounts.
In an attachment notice, Sebi has asked banks and depositories not to allow any debit from the accounts of Alchemist Holdings and three individuals, namely Brij Mohan Mahajan, Vikramaditya Singh and Chandra Shekhar Chauhan. However, credits have been permitted.
Further, the regulator has directed the banks to attach all accounts, including lockers, held by them.
Sebi said that there was a strong apprehension that the defaulters may dispose of the securities in the Demat accounts or mutual funds folio. "Realisation of the amount due under the certificate would, in consequence, be delayed or obstructed," the market regulator said.
In a notice to all banks in the country, the regulator ordered to attach with immediate effect "all accounts by whatever name, including lockers of the defaulters, held either singly or jointly with any other person, in your bank".
SEBI has also asked banks and depositories to provide details of all accounts held by defaulters, including a copy of account statements for the past year. It has also sought complete information of all loan accounts and advances related to the company and its three directors.