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SEBI Circular dt. 26.10.2016 for Freezing of Demat Accounts of Promoter & Promoter Group:

  1. SEBI vide Circular no. SEBI/HO/CFD/CMD/CIR/P/2016/116 on October 26, 2016; in order to ensure effective enforcement, has decided to freeze Demat Accounts of Promoter & Promoter group in case listed entities have not paid fines levied by RSEs for non-compliance in the following manner:
  • If not paid fine as per notice issued by RSE: freeze holdings in other securities in Demat account to the extent of liability calculated on quarterly basis.
  • If non-compliance for 2 consecutive periods & failure to comply with notice issued by RSE: concerned RSE shall intimate the depositories to freeze entire shareholding in such listed entity and also holdings in other securities be frozen to the extent of liability calculated on quarterly basis.
  • While freezing holdings as above, it is the discretion of RSE for determining which of securities & holdings are to be frozen.

For detailed information, the said Circular available at the following link:sebi-circular_26-10-2016_freezing-of-demat-acc

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