SEBI Unleashes Asset Attachment Notice, Targeting All Bank Accounts and Securities Holdings in Major Corporate Recovery Action

SEBI Unleashes Asset Attachment Notice, Targeting All Bank Accounts and Securities Holdings in Major Corporate Recovery Action​

Regulatory action against financial misconduct intensified as SEBI issued a comprehensive Notice of Attachment. The order names Srinivas Rao Marupudi and mandates the attachment of all bank accounts, post office holdings, Demat accounts, and Mutual Fund folios belonging to the defaulter. This sweeping move aims to recover outstanding dues related to Venus Power Ventures (India) Ltd.

The notice, dated June 10, 2026, formalizes the recovery process initiated by SEBI’s Recovery Division in exercise of powers conferred under Section 28A (1), 11(2) (ia) of the SEBI Act, 1992. The order targets financial institutions across India, placing a direct mandate on them to cease specific transactions involving the defaulter's accounts.

Mandates Issued for Blanket Financial Attachment​

SEBI has directed all Banks and Post Offices in India to immediately attach all accounts held by Srinivas Rao Marupudi. This attachment covers both singly or jointly held accounts and includes all associated lockers and proceeds due to the individual.

The purpose of this action is clear: ensuring that dues are realized under the relevant Recovery Certificate No. 4724 of 2022, which was drawn up following a Notice of Demand dated May 04, 2022. The total sum sought for recovery stands at ₹2,15,000/-.

Institutions receiving this notice are strictly forbidden from making any debit in the attached accounts until further orders are issued by the Recovery Officer of SEBI. However, credits into these accounts may still be allowed.

Attachment of Securities and Mutual Fund Holdings​

The enforcement action extends beyond traditional banking institutions. A separate mandate was issued to depository custodians, specifically M/s. National Securities Depository Ltd. and M/s. Central Depository Services (I) Ltd., directing them to attach all securities held by the defaulter.

This ensures that market assets are covered under the recovery process. The notice targets both Demat Accounts and Mutual Fund Folios associated with Srinivas Rao Marupudi. Like bank accounts, these holdings are subject to immediate attachment and restrictions on dealing until further directions are received from SEBI.

Recovery Dues Breakdown for Venus Power Ventures (India) Ltd.​

The total outstanding amount of ₹2,15,000/- is attributed to a specific penalty imposed by the Adjudicating Officer. The breakdown of these dues includes a substantial Penalty amounting to ₹2,00,000/-.

This principal debt was incurred in relation to an Order/GR/PU/2021-22/14195 dated November 12, 2021, concerning Venus Power Ventures (India) Ltd. To this penalty, there is a calculated Interest amount of ₹14,000/-, accruing at 12% p.a. from November 2021 to May 2022. A minor Recovery Cost of ₹1,000/- rounds out the total recoverable sum.

Institutional Obligations and Reporting Requirements​

The Notice requires all concerned financial institutions—be it a bank or a depository—to provide detailed information within 15 days. This mandate includes furnishing details of all accounts or folios held by Srinivas Rao Marupudi with their institution.

Furthermore, the banks must submit a copy of the account statement(s) for the latest one year. Institutions are also directed to provide complete details of any loan/advances taken by the defaulter and the assets charged against those loans. Failure to comply within 15 days will lead institutions to presume that no such accounts exist with them.