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Over 1,600 entities default in paying fine to Sebi

PTI | New Delhi |

More than 1,600 entities failed to pay penalties imposed on them by markets regulator Sebi for various violations till March 2017.

These defaulters include individuals and companies, which failed to pay penalties levied on them by Sebi for various offences related to securities market, while some of these cases are nearly two decade old.

Some of the defaulters have not paid up amounts as small as Rs.15,000, while the majority of individual penalties are worth a few lakhs of Rupees and a few others amounting to a few crores of Rupees.

Moreover, some of these dues are pending since 2000, while many of these cases are also pending in courts and at other forums.

As per the latest data released by Securities and Exchange Board of India (Sebi), total number of 'defaulters' in payment of penalty imposed by the regulator as on March 31, 2017 stood at 1,628.

Meanwhile, Sebi has also begun to exercise its powers of attaching bank as well as demat accounts and other assets for recovery of the outstanding dues pending for up to 17 years.

More than 2,500 attachment notices have already been issued to several entities, as part of Sebi's effort to recover funds from defaulters.

Securities Laws Act empowers Sebi to recover penalties imposed by the Adjudicating Officer, amount directed to be disgorged and money ordered to be refunded to the regulator.

The recovery powers include attachment of bank as well as demat accounts and sale of assets of the defaulters.