Sahara moves SAT against SEBI

It wants more time to submit documents related to about 3 crore investors

November 20, 2012 02:54 am | Updated October 18, 2016 01:05 pm IST - NEW DELHI

Sahara group on Monday moved the Securities Appellate Tribunal against market regulator Securities and Exchange Board of India (SEBI), seeking more time to submit documents related to about three crore investors in the case involving two group companies.

Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) have approached the Tribunal.

The two entities have been directed by the Supreme Court to refund to their bondholders Rs.24,000 crore along with interest of 15 per cent per annum for violating norms in raising funds from the public. The companies have moved the Tribunal asking it to direct SEBI to allow them time till January 31, to submit necessary documents related to the case. The ten day deadline set by the Supreme Court, in its order dated August 31, for the two entities to submit details of the concerned investors, has already expired.

In a public notice last month, SEBI had said that the two companies have not submitted the relevant documents to it and had also advised investors against yielding to any pressure from “Saharas or their agents” for switching over their investments in SIRECL and SHICL to other group companies.

Meanwhile, SEBI has decided to seek help from public sector banks and KYC Registration Agencies (KRAs) for carrying out ‘in-person verification’ of about three crore investors related to the case.

SEBI is already in the process of hiring outside investigating agencies to assist it in the matter involving two Sahara group companies.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.