Description

SEBI issues prohibitory order under Recovery Certificate Nos. 1968 of 2019 and 2159 of 2019 against Puppala Obul Reddy, prohibiting disposal or transfer of assets to recover outstanding dues in the matter of Covidh Technologies Limited.

Summary

SEBI has issued a Prohibitory Order in connection with Recovery Certificate Nos. 1968 of 2019 and 2159 of 2019 against Puppala Obul Reddy, in the matter of Covidh Technologies Limited. The order directs the noticee to refrain from disposing of, transferring, or alienating any movable or immovable assets to facilitate recovery of dues owed to SEBI.

Key Points

  • Prohibitory order issued against Puppala Obul Reddy under Recovery Certificate Nos. 1968 of 2019 and 2159 of 2019.
  • Matter relates to Covidh Technologies Limited.
  • The order restrains the noticee from disposing of or transferring assets pending recovery of SEBI dues.
  • Issued under the SEBI Act, 1992 and the SEBI (Recovery of Money) Regulations, 2013.
  • Date of order: March 16, 2026.

Regulatory Changes

No new regulatory changes introduced. This is an enforcement/recovery action under existing SEBI recovery mechanisms.

Compliance Requirements

  • Puppala Obul Reddy is prohibited from selling, transferring, alienating, disposing of, or creating any charge on any movable or immovable assets/properties.
  • Banks and financial institutions holding accounts or assets of the noticee may be directed to freeze such assets as per the recovery certificate.
  • Non-compliance with this order may result in further enforcement action by SEBI.

Important Dates

  • Recovery Certificate Nos. 1968 of 2019 and 2159 of 2019: Originally issued in 2019.
  • Prohibitory Order date: March 16, 2026.

Impact Assessment

This order has a limited impact on the broader market. It is an enforcement action targeting a specific individual (Puppala Obul Reddy) in connection with dues arising from the Covidh Technologies Limited matter. The prohibitory order serves to protect SEBI’s ability to recover outstanding penalties or disgorgement amounts by preventing asset dissipation. There is no systemic or sector-wide impact.

Impact Justification

Routine enforcement/recovery action against an individual in a specific matter; limited broader market impact.