The Scottish FA have issued Hearts with a transfer embargo after the club entered administration in June.
The Scottish Premiership side filed for administration after compiling debts totalling £28.4million
Club shareholders Ukio Bankas and the club's parent company UBIG - both of which are controlled by former owner Vladimir Romanov - are owed approximately £24m of the debt.
The Edinburgh club will now not be able to bring in new players aged 21 and over until February 1 2014.
However, the punishment does not apply to those currently registered with the squad, meaning Hearts will be able to offer new deals to already-contracted players.
Administrators BDO have been tasked with saving the financially-stricken club, with a creditors meeting scheduled for August 12.
Hearts will start the new season with a 15-point deduction as a result of entering administration.
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