SEBI Freezes Accounts Of 10 Individuals In Eros International Media Case
SEBI Freezes Accounts Of 10 Individuals In Eros International Media Case
The Securities and Exchange Board of India (SEBI) has ordered the attachment of bank accounts, as well as shares and mutual fund holdings, of 10 individuals to recover Rs 1.25 crore for non-compliance in the investigation of Eros International Media Ltd. The recovery actions were initiated after these individuals failed to pay the fines imposed by SEBI. The individuals involved in this matter include Gourab Ray Chaudhuri, Manisha Kumari Singh, Vinod Kumar Agarwal, Sutapa Mukherjee, Sumit Bhoot, Abhishek Das, Dev Govind Binani, Debosmita Ghosh Dastidar, Debjit Medda, and Anindya Bikas Datta.
SEBI's orders, passed on Thursday and Friday, state that these individuals owe a total of Rs 1.25 crore, which includes the principal amount, interest, and recovery costs. SEBI expressed concern that the defaulters might dispose of their bank accounts and securities in their demat accounts or mutual fund folios, which could delay or obstruct the recovery of the dues. As a result, the regulator has directed banks, depositories, and mutual funds to freeze the accounts of these individuals, while allowing credits to remain.
This action follows penalties totaling Rs 2 crores that were imposed on 17 entities, including the 10 individuals, in October 2023 for non-cooperation with SEBI's investigation into financial irregularities and mismanagement involving Eros International Media Ltd. The investigation focuses on agreements between Eros International Media Ltd and Spicy Entertainment & Media Ltd, along with other related entities.
In June 2023, SEBI had temporarily banned five entities, including Eros International, from securities markets due to suspected fund diversion, which was later confirmed in a follow-up order in October 2023.
