Sebi Cracks Down on Mehul Choksi with Asset Seizure
Sebi has ordered the attachment of bank accounts, shares, and mutual fund holdings of Mehul Choksi, totaling Rs 2.1 crore, for insider trading violations related to Gitanjali Gems. This follows Choksi's failure to comply with a payment notice, leading to asset freezing and restrictions on his financial activities.
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The Securities and Exchange Board of India (Sebi) has moved to secure the financial assets of Mehul Choksi, the controversial diamantaire, in an effort to reclaim Rs 2.1 crore. This action pertains to violations of insider trading regulations involving the shares of Gitanjali Gems.
The regulatory crackdown comes after Choksi disregarded a payment notice issued in May, obliging him to settle a fine imposed in January 2022. Choksi, a pivotal figure in the Gitanjali Gems fraud case, was previously warned of asset attachment if payment was not made within the stipulated 15-day window.
Sebi's recent directive mandates banks and financial institutions to prohibit any debits from Choksi's accounts, though credits remain permitted. This measure aims to prevent potential asset liquidation that could hinder debt recovery efforts, emphasizing the regulator's firm stance against insider trading misconduct.
(With inputs from agencies.)
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