Mumbai, June 27: The Securities and Exchange Board of India (Sebi) has directed the attachment of bank and demat accounts belonging to a former director of Ranbaxy and his wife to recover dues worth Rs 77.83 lakh from them in a matter related to insider trading in the shares of Orchid Chemicals & Pharmaceuticals.
The market regulator has to recover Rs 64.85 lakh from Ranbaxy’s former independent director V. K. Kaul and Rs 12.97 lakh from his wife Bala Kaul.
In the case of V. K. Kaul, the total amount includes penalties of Rs 50 lakh, the rest being interest accrued from January 2012.
In the attachment orders dated June 25, Sebi has asked the banks to attach all accounts, including lockers, held by the couple.
The market regulator has also asked the two depositories — NSDL and CDSL — to attach all the demat accounts of the two.
According to Sebi, there was “sufficient reason” to believe that the defaulters might dispose of the amounts in the accounts and “realisation of the amount due under the certificate would in consequence be delayed or obstructed”.
The regulator has ordered the banks and depositories to attach “all accounts by whatever name called of the defaulter, either singly or jointly with any other persons”.
Apart from the accounts, the lenders have been asked to attach the lockers held by the duo as well as “all other amount/proceeds due or may become due to the defaulters or any other money held or may subsequently hold for or on account of defaulter”.
It also directed the banks and the depositories that no debit would be made in these accounts until further directions.
However, credits, if any, into the account should be permitted.
The watchdog has asked for various details of the accounts held by the entities, including account statements.
The scrip of Orchid Chemicals saw a huge fall in the last half of March 2008 though it recovered significantly.
Several alerts were generated on the National Stock Exchange and the Bombay Stock Exchange and the stock was taken up for joint investigation by the bourses on the basis of which a report was submitted in April 2008.
Bala Kaul had bought several shares in the company from March 27-28, just before the start of share buy by Solrex, a Ranbaxy holding company on March 31.