SEBI Issues Critical Release Order as Financial Service Entity Satisfies Penalty Requirement

SEBI Issues Critical Release Order as Financial Service Entity Satisfies Penalty Requirement​

SEBI has issued a definitive Release Order pertaining to the recovery proceedings against Dollar Advisory and Financial Services. This order mandates banks across India to release attached accounts following the entity's compliance with the requirements set forth by the Securities Appellate Tribunal (SAT). The directive signals a key step in resolving outstanding liabilities associated with Recovery Certificate No. 8456 of 2024.

Resolution Reached After SAT Ruling on Financial Entity Defaulter​

The underlying proceedings concern a recovery amount of Rs. 8,76,000/- plus accrued interest, costs, and charges, drawn up by the Recovery Officer against Dollar Advisory and Financial Services (Proprietor: Mr Ravi Prakash Mohta). The notices of attachment previously covered various financial assets, including bank accounts, Demat Accounts, and Mutual Fund Folios held by the proprietorship.

The defaulter subsequently appealed this matter to the Hon'ble SAT through Appeal No. 239 and 240 of 2023. A critical ruling was issued by the Hon'ble SAT on April 22, 2026, which required the defaulter to deposit a specific portion of the penalty amount within four weeks to stabilize the recovery proceedings.

Financial Compliance Directs Release of Attached Accounts​

In compliance with the aforementioned Hon'ble SAT Order, it has been confirmed that Rs. 3,50,000 has been successfully recovered from Dollar Advisory and Financial Services. This sum represents 50% of the stipulated penalty amount as per the Tribunal's instructions.

In view of this successful financial recovery, SEBI directs all concerned banks to release the attached bank accounts of Dollar Advisory and Financial Services (PAN: AKBPM7004R). The Release Order is issued under the authority of Deputy General Manager & Recovery Officer, Western Regional Office.

Scope and Obligations for Banking Institutions​

This directive serves as a formal instruction to The Principal Officer/Chairman & Managing Director/CEO of all banks operating in India. Banks must execute the release of attached accounts pursuant to the original notices of attachment and provide intimation regarding this action to SEBI.

The order explicitly states that if the defaulter does not possess any type of account or folios with the specific bank, no such information needs to be reported back to SEBI in response to this particular directive. It is also emphasized that this release order operates without prejudice to any other existing attachment orders by competent authorities under applicable laws.