SEBI Directs Attachment of Accounts Against Entity in Continental Seeds Trading Probe: Rs 12 Lakh Liability Confirmed

SEBI Directs Attachment of Accounts Against Entity in Continental Seeds Trading Probe: Rs 12 Lakh Liability Confirmed​

The Securities and Exchange Board of India (SEBI) has taken decisive regulatory action regarding trading activities involving the scrip of Continental Seeds and Chemical Limited. A Recovery Certificate has been issued directing the attachment of bank accounts belonging to Vijay Prakash Gupta, identified as a defaulter in this matter.

This move comes following an investigation into certain entities’ involvement in trading irregularities related to the company's stock. The directive specifies the financial liability owed by the individual to SEBI.

Financial Liability and Recovery Certificate Details​

The enforcement action targets the repayment of dues accrued during the investigation period concerning Continental Seeds and Chemical Limited. A Recovery Certificate bearing No. 8873 of 2025 was issued in this context.

Initially, the total due against Vijay Prakash Gupta was recorded at Rs. 11,01,000/- (Rupees Eleven Lakh One Thousand Only), along with associated interest and charges. SEBI has since updated the outstanding liability as of the document date.

The current amount due to be recovered from the Defaulter by SEBI stands at Rs. 12,01,000/- (Rupees Twelve Lakh One Thousands Only). This represents the cumulative dues including associated interest and expenses.

SEBI Mandates Bank Remittance Against Defaulter​

The issuance of this notice is a formal direction to the Principal Officer/Chairman & Managing Director / CEO Head Post Master across all banks and mutual funds in India. Banks and Mutual Funds are directed to remit the specified amount immediately.

This remittance must be made against the accounts held by Vijay Prakash Gupta. The payment must be directed via direct credit using EFT, NEFT, or RTGS into SEBI’s designated account at ICICI Bank (A/c No. SEBIRRDPEN8873).

SEBI emphasized that immediate action is required from all financial institutions holding the defaulter's accounts to ensure compliance with this regulatory directive. Failure to confirm the e-payment as per the mandated format will result in the amounts not being accounted toward the dues.

Legal Basis for SEBI’s Enforcement Action​

The direction issued by SEBI is grounded in specific statutory powers vested under Indian securities law. The action was taken exercising power conferred under section 28A of the SEBI Act, 1992.

This regulatory enforcement also draws upon provisions within the Securities Laws (Amendment) Act, 2014. It specifically references sections ranging from 220 to 232 and the Second and Third Schedules to the Income-tax Act 1961.

The document outlines all necessary details for recovery, including the Case Name and Recovery Certificate Number. The issuance of this notice signifies a critical step in SEBI's ongoing oversight into market trading conduct.