Sebi orders release of bank, demat account of Sterlite Metal

Markets regulator Sebi has ordered the release of bank and demat accounts of Sterlite Metal Rolling and its former promoter after recovering dues worth Rs 62 lakh.

In an order dated November 26, the Securities and Exchange Board of India (Sebi) directed banks, depositories—NSDL and CDSL—and mutual funds (MFs) to “release the bank accounts/ lockers, demat accounts and mutual fund folios” of the firm and its erstwhile promoter Hitesh Bhutla.

In July 2017, Sebi had issued notices against the entities attaching their bank and demat accounts as well as MF folios to recover Rs 62 lakh.

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The notices had come after the entities failed to pay the fine imposed on them for not complying with SAST (Substantial Acquisition of Shares and Takeovers) norms.

Besides, Sterlite Metal was penalised for failing to make an open offer.

Under the Securities Laws Act, Sebi has powers to attach bank as well as demat accounts and other assets for the recovery of the dues.