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CS Executive · Capital Market and Securities Laws · Securities Market Intermediaries

SEBI attaches the bank account of a depository participant under Section 11(4)(e) for alleged violations. What must SEBI do about the attachment?

SEBI must obtain confirmation of the attachment from the Special Court having jurisdiction within ninety days of attaching the account. Without confirmation the attachment cannot continue beyond ninety days. Central Government approval is not the required step.

  1. ANothing, as attachment continues indefinitely
  2. BObtain confirmation from the Special Court within ninety days of the attachmentCorrect
  3. CObtain approval from the Central Government within thirty days
  4. DRelease the attachment after sixty days automatically

Explanation

Attachment under clause (e) is for a period not exceeding ninety days. Within ninety days SEBI must obtain confirmation from the Special Court established under section 26A having jurisdiction. On confirmation, the attachment continues during pendency of proceedings.

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