Description

SEBI issues a prohibitory order under Recovery Certificate No. 3614 of 2021 against Sudarshan Venkatraman, restraining him from alienating or encumbering assets in connection with recovery proceedings related to M/s. Zylog Systems Ltd.

Summary

SEBI has issued a prohibitory order under Recovery Certificate No. 3614 of 2021 against Sudarshan Venkatraman in connection with recovery proceedings in the matter of M/s. Zylog Systems Ltd. The order restrains the respondent from alienating, transferring, or encumbering assets pending satisfaction of the outstanding recovery amount.

Key Points

  • Recovery Certificate No. 3614 of 2021 issued against Sudarshan Venkatraman
  • Prohibitory order issued under SEBI’s recovery proceedings framework
  • Respondent is prohibited from alienating or encumbering specified assets
  • Related to enforcement action in the matter of M/s. Zylog Systems Ltd.
  • Order issued by SEBI’s Recovery Officer

Regulatory Changes

No new regulatory changes. This is an enforcement/recovery action under existing SEBI (Recovery of Money) Rules, giving effect to a previously issued recovery certificate.

Compliance Requirements

  • Sudarshan Venkatraman must not alienate, transfer, mortgage, charge, or otherwise deal with any assets covered by this prohibitory order
  • Any bank, depository, or financial institution holding assets of the respondent is notified to comply with the order
  • Any third parties with notice of the order must not assist in circumventing it

Important Dates

  • Recovery Certificate No. 3614 issued: 2021
  • Prohibitory Order issued: March 2, 2026

Impact Assessment

This order has minimal broader market impact as it is an individual enforcement action against a specific person in connection with a company (Zylog Systems Ltd.) that is no longer actively traded. The order is significant for the respondent as it freezes their ability to deal with covered assets until the recovery dues are satisfied. This reflects SEBI’s continued pursuit of outstanding recovery certificates even years after their initial issuance.

Impact Justification

Enforcement action against a specific individual in an ongoing recovery proceeding related to a delisted company; minimal broader market impact but significant for the respondent.