Order Releasing Bank/Post Office Accounts, Demat Accounts and Mutual Fund Folios for RC 6745 of 2023

Description

SEBI order releasing the attachment on bank/post office accounts, demat accounts, and mutual fund folios of entities subject to Recovery Certificate No. 6745 of 2023, indicating settlement or compliance with the recovery proceedings.

Summary

SEBI’s Recovery Officer has issued an order releasing the attachment on bank/post office accounts, demat accounts, and mutual fund folios that were previously frozen under Recovery Certificate (RC) No. 6745 of 2023. Such orders are issued when the dues under the recovery certificate have been satisfied, or when SEBI determines that the attachment is no longer required.

Key Points

• Recovery Certificate No. 6745 of 2023 is the underlying enforcement instrument.
• The order releases attachments on bank/post office accounts, demat accounts, and mutual fund folios of the subject entities.
• The release indicates that the outstanding recovery proceedings under RC 6745/2023 have been addressed (through payment, settlement, or other compliance).
• All concerned banks, depositories, and mutual fund registrars are directed to lift the freeze on the specified accounts/folios.

Regulatory Changes

No new regulatory framework is introduced. This is an administrative order under SEBI’s recovery mechanism, exercising powers under the SEBI Act read with the Second Schedule to the Income Tax Act, 1961, which governs recovery of dues.

Compliance Requirements

• Banks and post offices holding the named accounts must remove the attachment/freeze upon receipt of this order.
• Depository participants must unfreeze the identified demat accounts.
• Mutual fund registrars/transfer agents must release the frozen folios.
• Concerned intermediaries should update their records promptly to reflect the released status.

Important Dates

• Order date: May 18, 2026
• Effective immediately upon issuance and communication to concerned institutions.

Impact Assessment

The impact is limited to the specific individuals or entities named in Recovery Certificate No. 6745 of 2023. No broader market or systemic impact is expected. This order restores normal access to financial accounts and instruments for the affected parties, signalling resolution of the underlying SEBI enforcement action.

Impact Justification

Administrative enforcement order releasing previously frozen financial accounts under a specific Recovery Certificate; directly affects only the named entities and has no broad market impact.