Applying its newly-got powers, the Securities and Exchange Board of India on Wednesday passed an attachment order against MPS Greenery Developers where it restrained the company from either transferring or pledging of its holding in the group company MPS Food Products. The order comes as MPS Greenery has not paid dues amounting to Rs 1,520 crore as was ordered by the regulator in October 2013.
“MPS Greenery Developers Ltd are hereby prohibited and restrained until further orders of the recovery officer, from transferring any such shares standing in your name in MPS Food Products or creating any encumbrance or receiving dividend thereon,” said Sebi in its order. Sebi also restrained MPS foods from allowing any transfer of shares in the company that is held in the name of MPS Greenery.
On October 25, 2013 the capital markets regulator had also passed an attachment order against MPS Greenery Developers Limited where it moved to freeze all its bank accounts in a bid to recover Rs 1,520 crore.
Earlier Sebi had restricted MPS Greenery from running their collective investment schemes as they were not registered with the regulator and had cautioned investors from investing in their schemes.
Sebi had in the month of October also sent recovery notices to several other individuals and companies that were involved in the IPO irregularity scam and other scams.
While Sebi is exercising its powers that have been conferred upon it as a result of the ordinance promulgated by the President, the Sebi Amendment Bill is still lying with the Parliamentary Standing Committee and has yet to be passed by the Parliament. Sebi has been demanding for powers to recover dues in the form of penalty imposed by it against various entities for their illegitimate activities.