SEBI orders the attachment of Beckon Industries' bank and demat accounts

24 Aug 2022 , 07:59 AM

In order to recover around Rs11 crore in investor funds, the Securities and Exchange Board of India (SEBI) on Tuesday ordered the attachment of Beckons Industries Ltd.’s bank accounts and Demat accounts.

According to SEBI, Beckon Industries Ltd has been the target of collection actions to recover Rs11.30 crore, which includes all costs, interests, charges, and other expenses.

Banks and mutual funds were notified by SEBI to refrain from approving any debits from the accounts of Beckons Industries Ltd. (BIL). Credits have been allowed, though.

The market watchdog also instructed all banks to immediately attach all of the defaulter’s accounts, including lockers.

According to the statement, “it is required to attach the defaulters’ assets, including bank accounts, demat accounts, and mutual fund folios to prevent any alienation of the same” in order to defend the interests of the investors.

The market watchdog fined Beckons Industries Ltd. a total of Rs10.25 crore in June 2020 for manipulating the issuance of GDRs.

According to the regulator’s findings, Beckons Industries issued the GDRs fraudulently through credit agreements and account charge agreements, which were not disclosed to the exchanges and also contained false disclosures, according to SEBI’s decision.

Beckons violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) standards and listing requirements when he served as guarantor and deposited the entire GDR proceeds with EURAM Bank as security against the loan for purchasing the firm’s GDRs.