SEBI Enforces Strict Recovery Against Defaulter Amid Shilpi Cable Technologies IPO Dispute

SEBI Enforces Strict Recovery Against Defaulter Amid Shilpi Cable Technologies IPO Dispute​

SEBI has issued a formal Remittance Advice, signaling stringent enforcement action against Arvind Poddar in relation to outstanding dues connected to the IPO of Shilpi Cable Technologies Ltd. This directive mandates financial institutions and mutual funds across India to remit specific amounts owed by the individual defaulter.

The regulatory action comes under Recovery Certificate No. 6728 of 2023, reinforcing SEBI's commitment to debt recovery processes concerning the aforementioned Initial Public Offering.

Mandate for Financial Institution Remittance​

The notice is directed at all banks and mutual funds operating in India, detailing their obligation when dealing with Arvind Poddar (PAN: AODPA6026K). This advice specifies that these institutions must receive payments corresponding to the accrued liabilities owed by the defaulter.

Originally, the recovery process initiated following a demand notice dated June 27th, 2023, sought payment against a total due of Rs. 2,09,000/- along with associated interest, costs, and expenses. This amount related to the IPO of Shilpi Cable Technologies Ltd.

Current Outstanding Dues Amount​

According to SEBI’s records as stipulated in the directive dated June 10th, 2026, the current outstanding liability that must be recovered from Arvind Poddar is Rs. 2,81,000/- (Rupees Two Lakh Eighty-One Thousands Only). This figure represents the accumulated dues as of the date of the remittance advice.

Financial institutions are therefore directed to ensure immediate payment of this specified amount towards SEBI's recovery efforts. The full compliance details must be transmitted via email to the designated SEBI recovery addresses.

Legal Basis and Compliance Requirements​

This direction is being issued by SEBI in the exercise of powers conferred under Section 28A of the SEBI Act, 1992. This action aligns with various amending legislation including the Securities Laws (Amendment) Act, 2014.

The notice serves as a formal mechanism to enforce compliance, requiring direct credit through EFT/NEFT/RTGS to A/c No.SEBIRRDPEN6728 of ICICI Bank. Institutions are strictly cautioned to intimate remittance details following the prescribed format.

Detailed Recovery Protocol​

To ensure proper accounting of the recovery process, a specific protocol for payment is mandated by the Securities and Exchange Board of India. The required documentation includes the Case Name and Recovery Certificate Number, the name of the Payee, and the Date of Payment.

The note accompanying the directive emphasizes that without confirmation of e-payment in the specified format, any credits made will not be accounted toward the dues. This structured approach underscores SEBI's meticulous oversight of the recovery process against the defaulter.