Description
SEBI issues a prohibitory order under Recovery Certificate No. 4355 of 2021 against Venmax Drugs and Pharmaceuticals Limited, restricting withdrawal of funds from bank and demat accounts to recover outstanding dues.
Summary
SEBI has issued a prohibitory order under Recovery Certificate No. 4355 of 2021 against Venmax Drugs and Pharmaceuticals Limited. The order directs the defaulter’s bank(s) to prohibit any withdrawal or transfer of funds from the accounts of Venmax Drugs and Pharmaceuticals Limited beyond specified limits, in order to facilitate recovery of outstanding dues owed to SEBI.
Key Points
- Prohibitory order issued against Venmax Drugs and Pharmaceuticals Limited under RC No. 4355 of 2021
- Order restricts the defaulter from withdrawing or transferring funds from bank/demat accounts
- Banks and financial institutions are directed to comply with the prohibitory order
- Part of SEBI’s ongoing recovery proceedings to enforce payment of dues under the Recovery Certificate
- Related modification orders (Notice of Attachment and General Remittance Order) also issued on the same date for the same RC
Regulatory Changes
No new regulatory changes introduced. This is an enforcement action under SEBI’s existing recovery mechanism pursuant to SEBI (Recovery of Dues from Defaulters) Rules, 1993 read with SEBI Act, 1992.
Compliance Requirements
- Venmax Drugs and Pharmaceuticals Limited must comply with the prohibitory directions and must not withdraw or transfer funds in contravention of the order
- Banks and financial institutions holding accounts of Venmax Drugs and Pharmaceuticals Limited are directed not to allow withdrawals beyond the permitted threshold
- Non-compliance with the prohibitory order may invite further legal action under SEBI Act
Important Dates
- Recovery Certificate No. 4355 issued: 2021
- Prohibitory Order issued: March 2, 2026
- Effective immediately upon issuance
Impact Assessment
This prohibitory order has minimal direct market impact as it targets a single entity (Venmax Drugs and Pharmaceuticals Limited) in the context of dues recovery. The order is part of SEBI’s standard enforcement toolkit to recover outstanding penalties or dues. Market participants and investors in general are not directly affected. Financial institutions holding accounts of the named entity must ensure compliance with the freezing/prohibition directives.
Impact Justification
Routine enforcement/recovery action against a single non-listed entity with no direct market-wide impact; relevant only to the named defaulter and their banking institutions