Beating drums to sell attached assets? Sebi flags 'outdated' recovery methods

Beating drums and shouting aloud may have a lot of dramatic value to attract potential bidders, but capital markets regulator Sebi feels these archaic methods for recovery of funds through sale of attached assets are outdated and there are several newer alternatives that can yield better results.

The 'outdated' provisions have caught the eyes of the Securities and Exchange Board of India (Sebi) during a review of recovery powers available to the regulator, which it exercises when someone fails to pay penalties or fees or defaults on regulatory orders.

In consultation with the Ministry of Finance, the securities market regulator is considering drafting separate recovery rules to recover penalties, fees, disgorgement amount and refund orders made under the Sebi Act, officials said.

Sebi is empowered to order attachment and sale of defaulters' properties as well as bank accounts, as also to order arrest and detention of a defaulter and to appoint a receiver for management of the ...