Sebi plans to rope in agency to trace entities, serve summons

Sebi plans to rope in agency to trace entities, serve summons

Markets regulator Sebi is looking to rope in an independent agency that will trace accused entities against whom notices have been issued by the authorities, and serve summons to them.

The work is expected to be carried out by engaging systems through competent manpower such as ex-servicemen, ex-police personnel, investigators, detectives and alike.

In a notice issued on Monday, the regulator invited applications for empanelment of an agency for providing such services.

The scope of the work includes tracing of accused entity based on records and addresses provided by the regulator and serving of summons or notices issued by the Sebi’s special courts and Sebi authorities on behalf of the regulator.

Further, the agency would undertake tours to trace the whereabouts of the accused (including absconding) across India, wherever the lead takes them, and for service of the summons and warrant with prior approval of the concerned officer of Sebi.

Also, the agency would be required to coordinate with the local police stations for serving or tracing for the purpose of serving of summons, warrants and notices.

After serving of summons upon the accused, Sebi said the agency would have to take acknowledgement of the same and submit to the regulator for necessary action.

“In case of execution of bailable/ non-bailable arrest warrants, help of the concerned police station is required, which would require regular liaisioning with the police,” Sebi said.

In case notices or summons are served by hand, the server would be required to depose before court, it added.

Spelling out the eligibility criteria, the regulator said the agency should be a registered partnership or limited liability partnership (LLP)/body corporate, however, joint ventures will not be accepted.

Among other criteria, the agency should have operations in Mumbai, for providing services including locating the addresses of the missing or absconding NPA customers and defaulters including their legal heirs for banks and conducting forensic audits for listed companies and law enforcement agencies.

The interested agencies are required to submit their applications till January 18, the Securities and Exchange Board of India (Sebi) said.

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