Description

SEBI releases attached bank accounts, demat accounts, and mutual fund folios of Madhu Chanda, Anandilal Chanda, and Anandilal Chanda HUF after recovery of Rs. 29,92,431.41 against Recovery Certificate No. 6110 of 2022.

Summary

SEBI’s Recovery and Refund Department has issued a Release Order dated January 28, 2026, releasing all attached bank accounts, lockers, demat accounts, and mutual fund folios of Madhu Chanda (PAN: ADGPC2308E), Anandilal Chanda (PAN: AACPC9029K), and Anandilal Chanda HUF (PAN: AACHC8681B). The release follows SEBI’s successful recovery of Rs. 29,92,431.41 (including interest and costs) against Recovery Certificate No. 6110 of 2022, which originally demanded Rs. 26,76,000. The matter relates to front-running by Manish Chaturvedi & Others.

Key Points

  • Recovery Certificate No. 6110 of 2022 was issued on December 13, 2022 for Rs. 26,76,000
  • Notices of Attachment were issued on January 13, 2023 freezing bank accounts, lockers, demat accounts, and mutual fund folios
  • SEBI successfully recovered Rs. 29,92,431.41 (including interest/costs) representing full and final settlement
  • All attached accounts and folios are now released pursuant to this order
  • Attachment proceedings were numbered 9655 & 9656 of 2022
  • Separate attachments under Recovery Certificate No. 4040 of 2021 (proceedings 7311 and 7312 of 2021) continue to remain in force

Regulatory Changes

No regulatory changes. This is an administrative order releasing previously attached assets after successful recovery.

Compliance Requirements

  • All banks, mutual funds, NSDL, and CDSL are directed to release the attached accounts/folios of the defaulters
  • If the defaulters have no accounts with the recipient institution, no response to SEBI is required
  • Institutions must ensure attachments under separate Recovery Certificate No. 4040 of 2021 remain in force

Important Dates

  • December 13, 2022: Recovery Certificate No. 6110 of 2022 issued
  • January 13, 2023: Notices of Attachment issued
  • January 28, 2026: Release Order issued

Impact Assessment

This order has minimal market impact as it affects only three specific individuals/entities. The release of attached assets indicates successful completion of recovery proceedings in a front-running enforcement matter. Financial institutions holding accounts for these individuals must take administrative action to unfreeze the accounts. The order demonstrates SEBI’s effective enforcement and recovery mechanisms, recovering more than the original demand (Rs. 29.92 lakh recovered vs. Rs. 26.76 lakh demanded).

Impact Justification

Administrative release order affecting specific individuals after successful recovery of dues. No broader market impact or regulatory changes. Procedural closure of enforcement action.