Zero Tolerance: SEBI Freezes All Bank and Demat Assets of Uniport Computers over Security Dematerialization Delay

Zero Tolerance: SEBI Freezes All Bank and Demat Assets of Uniport Computers over Security Dematerialization Delay​

The Securities and Exchange Board of India (SEBI) has initiated stringent recovery proceedings against Uniport Computers Ltd., moving to attach all banking and securities accounts held by the company. The action follows a Recovery Certificate issued concerning serious delays in the dematerialization of securities, leading to significant accrued penalties and dues.

This regulatory move highlights SEBI's zero-tolerance stance regarding corporate non-compliance, specifically when it relates to the management and timely processing of security transactions.

SEBI Orders Attachment of Bank Accounts​

The Recovery Division of SEBI has formally ordered the attachment of all accounts belonging to Uniport Computers Ltd. across various banks and post offices in India. This decision stems from a Recovery Certificate No. 4802 of 2022, issued on May 27, 2022.

The total outstanding amount due by Uniport Computers Ltd. against the company is Rs. 24,01,000/- (Rupees Twenty-Four Lakh One Thousand Only). This recovery covers penalties, interest, and associated costs related to the security dematerialization delay.

The dues are broken down as follows: a Penalty of Rs. 10,00,000/- imposed by the Adjudicating Officer in October 2010; Interest amounting to Rs. 14,00,000/-, calculated from October 2010 to May 2022 at 1% per month; and Recovery Costs totaling Rs. 1,000/-.

Impact on Uniport’s Banking Portfolio​

Effective immediately, all accounts held by the defaulter, whether singly or jointly with any other person(s), have been attached. This includes all bank accounts and associated lockers across India.

The order directs that no debit shall be made in these designated accounts up to the total due amount until further orders are received from SEBI’s Recovery Officer. However, the notice clarifies that any credits falling into these accounts may still be allowed.

Financial institutions are directed to provide comprehensive details of all such accounts and their statements for the latest one year within 15 days of receiving this attachment notice. The banks must also immediately attach any new accounts opened by Uniport after the issuance of this notice.

Attachment Proceedings Against Securities and Demat Holdings​

Complementing the banking action, SEBI has also issued a separate notice to National Securities Depository Ltd., attaching all dematerialized securities and mutual fund folios belonging to Uniport Computers Ltd. This proceeding is conducted under Attachment Proceeding No. 15429 of 2026.

The total outstanding amount owed by the company, which precipitated this action, remains Rs. 24,01,000/-. The attachment ensures that no securities or instruments held in these folios are disposed of before recovery is achieved.

This regulatory order dictates that no debit shall be made against these accounts/folios until further instructions from SEBI are received. Banks and depository institutions holding the assets must also submit detailed statements and confirm the attachment status within 15 days.

Compliance Mandate and Regulatory Oversight​

The action taken by SEBI is executed in exercise of powers granted under Section 28A (1) and 11(2) (ia) of the SEBI Act, 1992. This decisive intervention ensures that financial institutions are aware of their obligations regarding asset restraint on behalf of SEBI's recovery process.

SEBI has strictly directed all concerned parties to cooperate with the Recovery Officer’s mandates. The notice underscores that if any bank or depository institution receives no response within 15 days, it will be presumed that the defaulter holds no active account or balance with them.