SEBI Mandates Full Remittance of Dues for Investor Investigation Case Involving Continental Seeds and Chemicals Limited

SEBI Mandates Full Remittance of Dues for Investor Investigation Case Involving Continental Seeds and Chemicals Limited​

The Securities and Exchange Board of India (SEBI) has issued a formal remittance advice concerning the outstanding dues related to an ongoing investigation into trading activities involving Continental Seeds and Chemicals Limited. This directive mandates that specific financial institutions ensure the recovery of current liabilities from the defaulting entity, Shiv Enterprises, proprietor Mujaffar Khan.

The action falls under Recovery Certificate No. 8869 of 2025, which pertains to investigation proceedings initiated by SEBI. The notice underscores the Board's commitment to ensuring complete financial accountability in market trading activities.

Details of the Regulatory Dues and Investigation​

SEBI had previously directed the attachment of bank accounts belonging to Mujaffar Khan, proprietor of Shiv Enterprises (PAN: EGSPK2609R). This step was taken following an initial determination of dues concerning the stock of Continental Seeds and Chemicals Limited.

The original recovery certificate dated August 20, 2025, established a debt amounting to Rs. 13,21,000/- (Rupees Thirteen Lac Twenty One Thousand Only), along with accrued interest, costs, charges, and expenses. This constituted the initial financial liability identified in the investigation process.

Current Liability Amount Demanded by SEBI​

As per the latest regulatory documentation issued on June 10, 2026, the current dues or liability to be recovered from the defaulter have been revised. The amount now stands at Rs. 14,41,000/- (Rupees Fourteen Lac Forty One Thousand Only).

SEBI has directed all banks and mutual funds in India to remit this precise amount directly to the accounts held by SEBI upon the defaulter. This remittance must be done promptly from any bank or folio holding that pertains to Mujaffar Khan's account.

Enforcement Under SEBI Act, 1992​

This direction is being issued by SEBI in exercise of powers conferred under Section 28A of the SEBI Act, 1992, as amended by the Securities Laws (Amendment) Act, 2014. It also draws authority from sections 220 to 227, 228A, 229, and 232, along with relevant provisions of the Income-tax Act 1961.

The notice emphasizes that all banks and mutual funds must ensure this payment is made via direct credit. Failure to confirm e-payment in the specified format means that the credits will not be accounted towards the outstanding dues.

Requirements for Financial Institutions​

The principal officer of any bank or mutual fund receiving this advice has been directed to process the remittance immediately. The institutions are required to intimate all necessary remittance details, following a specific format provided in the advisory document, to SEBI's designated email addresses.

This formal regulatory action reinforces SEBI's vigilant oversight over trading activities and market discipline. It ensures that financial obligations arising from such investigations are strictly met by the concerned parties involved in the securities trade.