The Securities Appellate Tribunal (SAT) has upheld the SEBI order against Sahara to refund money to investors in the companies optionally fully convertible debentures (OFCD) scheme.
The SAT has ordered Sahara to repay within six-weeks, reports CNBC-TV18.
The issue relates to SEBI's finding in November, 2010 indicting two Sahara Group firms — Sahara India Real Estate Corporation now known as Sahara Commodity Services Corporation Ltd and Sahara Housing Investment Corporation — for raising funds from the public through OFCD scheme without conforming to prudent disclosure and other investor protection norms, which govern such public issues.
The Sahara entities had raised nearly Rs 24,029 crore via the OFCD scheme.
The SAT had also earlier observed that the Securities and Exchange Board of India (SEBI) has wider powers under the SEBI Act to issue directions to even unlisted firms to protect interest of investors in the securities market.
The observation came in response to a Sahara Group argument that the jurisdiction to regulate an unlisted public company lies with the Central government and not with SEBI.
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