INSUBCONTINENT EXCLUSIVE:
Sebi has passed this new order when a long-running legal dispute is going on in the SC.In a fresh crackdown on Saharas, regulator Sebi has
found another group firm to have raised over Rs 14,000 crore in violation of rules and has ordered the company and its then directors
Corporation Ltd (SICCL), as well as its then directors and associated entities from the markets and from associating with any public entity,
new order when a long-running legal dispute is going on in the Supreme Court over an earlier order from the capital markets regulator asking
two other Sahara firms in 2011 to refund over Rs 24,000 crore garnered by issuing similar bonds -- the optionally fully convertible
Court-monitored repayment process, the group has been saying it has already refunded more than 98 per cent of the amount directly to
investors and the proof for the same have been given to Sebi
Besides, Sahara has also deposited a large amount to the Sebi account, but has alleged that the regulator has been able to disburse only a
small portion to investors
too, the Sebi order mentioned that the company made submissions that it has already refunded the money collected from the investors in cash,
barring Rs 18 crore for which the bondholders did not turn up for the refund
Whole Time Member Madhabi Puri Buch said the repayments must be done through non-transferrable bank demand draft or pay order, while the
refund amount directions would be modified for the money claimed to have been already returned to investors -- provided the payments are
chief Subrata Roy and others party to the earlier Sebi orders against two other Sahara firms, the amount needs to be deposited in the
existing Sebi-Sahara account, from which the regulator would make further refunds to concerned investors after permission from the Supreme
SICCL while it was investigating the other two companies
Sebi found that SICCL had made an offer of OFCDs in financial years 1998-2009 and raised an amount of at least Rs 14,106 crore from
has contravened the provisions of the Companies Act," Buch said in the order dated October 31.The company submitted that it was not a public
fund raising as the money was raised through a private placement of OFCDs to an identified target group comprising of its workers,
employees, friends, associates and individuals having deposits or association with group entities
regulator has ordered SICCL, Subrata Roy, O P Shrivastava, J B Roy, A S Rao, Ranoj Das Gupta, as well as legal representatives of late D S
Thapa, late P S Mishra and late Y N Saxena, to jointly and severally refund the money collected by the company through the issuance of OFCD
a full inventory of all the assets and properties and details of all the bank accounts, demat accounts and holdings of mutual fund, shares
company for the sole purpose of making the refunds as directed above and deposit the proceeds in the Sebi Sahara refund account
Such proceeds shall be utilised, with the permission of the Supreme Court, for the purpose of making refund/repayment to the investors of
