SEBI has issued Prohibitory Order No. 1455 of 2026 in the matter of Rich Infra Developers India Limited pursuant to Recovery Certificate No. 2823 of 2020. The order directs banks, financial institutions, depositories, and other entities to prohibit Rich Infra Developers India Limited from operating or transacting through its bank accounts, demat accounts, and other assets until the outstanding dues under the Recovery Certificate are satisfied.

Key Points

• Prohibitory Order No. 1455 of 2026 issued by SEBI’s Recovery Officer on May 18, 2026
• Pertains to enforcement of Recovery Certificate No. 2823 of 2020 against Rich Infra Developers India Limited
• All banks, financial institutions, and depositories are directed to freeze accounts and assets of the defaulter
• The order aims to prevent dissipation of assets pending recovery of outstanding dues owed to SEBI
• Recovery proceedings initiated under the SEBI Act, 1992 and the Second Schedule of the Income Tax Act, 1961 (as applicable to SEBI recovery)

Regulatory Changes

No new regulatory framework introduced. This is an enforcement action under existing SEBI recovery mechanisms. The prohibitory order is issued under Rule 73 of the Second Schedule of the Income Tax Act, 1961, as applicable to SEBI’s recovery proceedings.

Compliance Requirements

• Banks and financial institutions: Immediately freeze all bank accounts held in the name of Rich Infra Developers India Limited upon receipt of this order
• Depositories (NSDL/CDSL): Freeze all demat accounts and securities held by Rich Infra Developers India Limited
• Third parties holding assets: Prohibited from transferring, alienating, or encumbering any assets belonging to Rich Infra Developers India Limited
• Compliance confirmation: Entities must acknowledge receipt and compliance with the prohibitory order to SEBI’s Recovery Officer

Important Dates

• Recovery Certificate issuance: 2020 (RC No. 2823 of 2020)
• Prohibitory Order date: May 18, 2026
• Effective date: Immediately upon receipt by the respective banks, depositories, and institutions

Impact Assessment

This order has limited broader market impact as it targets a specific defaulter, Rich Infra Developers India Limited, which does not appear to be a publicly listed company. The practical effect is an asset freeze on the company’s financial accounts and securities holdings to facilitate recovery of dues owed to SEBI under the 2020 Recovery Certificate. Investors and market participants not directly connected to Rich Infra Developers India Limited are unaffected. The order reflects SEBI’s continued enforcement of outstanding recovery certificates against defaulters.