Description

SEBI issues a prohibitory order under Recovery Certificate No. 3613 of 2021 against M/s. Sthithi Insurance Services Pvt Ltd for recovery of dues in the matter of M/s. Zylog Systems Ltd.

Summary

SEBI has issued a prohibitory order pursuant to Recovery Certificate No. 3613 of 2021 against M/s. Sthithi Insurance Services Pvt Ltd in connection with the matter of M/s. Zylog Systems Ltd. This order is part of SEBI’s enforcement and recovery proceedings to recover dues from entities found liable in regulatory proceedings.

Key Points

  • Prohibitory order issued against M/s. Sthithi Insurance Services Pvt Ltd
  • Recovery Certificate No. 3613 of 2021 forms the basis of this order
  • Matter relates to M/s. Zylog Systems Ltd
  • Order restricts the named entity from alienating, disposing of, or dealing with assets
  • Issued by SEBI’s Recovery Officer under the SEBI Act

Regulatory Changes

No new regulatory changes. This is an enforcement/recovery action under existing SEBI (Recovery of Money) Regulations and provisions of the SEBI Act, 1992.

Compliance Requirements

  • M/s. Sthithi Insurance Services Pvt Ltd is prohibited from alienating, transferring, or disposing of any assets or properties
  • Third parties (banks, depositories, registrars) receiving this order are required to freeze/hold assets of the named entity as directed
  • Non-compliance with a prohibitory order constitutes contempt of the recovery proceedings

Important Dates

  • Recovery Certificate issued: 2021 (RC No. 3613 of 2021)
  • Prohibitory order date: March 2026

Impact Assessment

This order has minimal broader market impact. It is a targeted enforcement action against a specific entity (M/s. Sthithi Insurance Services Pvt Ltd) to recover dues arising from the Zylog Systems matter. The primary impact is on the named respondent whose assets will be frozen or attached. Investors and market participants not involved in this matter are unaffected.

Impact Justification

Routine enforcement action - prohibitory order for recovery of dues against a specific entity in an older matter (RC from 2021). Limited broader market impact; relevant only to parties directly involved.