Markets regulator Sebi has ordered attachment of bank accounts as well as share and mutual fund holdings of Rainbow Industries and Constructions and its two directors to recover over Rs 11 crore.

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The recovery proceedings were initiated against the company and its directors after they failed to comply with Sebi's order.

The Securities and Exchange Board of India (Sebi) in November 2018 had directed the company and its directors to refund investors' money along with interest.

Rainbow Industries had raised Rs 11.36 crore through redeemable preference shares (RPS) from investors without complying with public issue norms.

Rainbow issued RPS to 5,379 persons amounting to Rs 6 crore during 2011-12. For the period 2012-13, it allotted RPS worth Rs 5.36 crore to 4,673 persons.

In an attachment notice issued on Friday, Sebi asked banks and depositories not to allow any debit from the accounts of Rainbow Industries and its directors Nidhi Yogendra and Dhiren Rawani. However, credits have been permitted.

Further, the capital markets watchdog has directed the banks to attach all accounts, including lockers, held by the defaulters.

The regulator said there is sufficient reason to believe that the defaulter may dispose of the amounts in the bank accounts and securities in the demat accounts and "realisation of amount due under the certificate would in consequence be delayed or obstructed".

In a separate notice, the regulator has ordered attachment of bank and demat accounts of Narendra Vallabhji Bahuva to recover dues totalling Rs 5.73 lakh.

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A fine of Rs 5 lakh was imposed on him for violating securities market norms in the matter of Octant Interactive Technologies Ltd.

The pending dues -- Rs 5.73 lakh--? include the initial fine amount of Rs 5 lakh, interest of over Rs 72,000 and a recovery cost of Rs 1,000.