Sebi vs sahara

case study on frauds sahara

In case of SICCL 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. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies ROC under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.

Despite the double payment for single liability, Sahara India has been continuously depositing money of around Rs 20, crore including interest earned in Sahara-Sebi account.

However this also points out the possibility of large scale money laundering by the Sahara Pariwar to hide black money.

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This gave a valid point to Sahara's argument before courts that it had repaid most of the investors who had come forward to claim the investment which they had made in bonds issued by two group companies.

And since August Sebi has only refunded Rs. The order, which bars the company, Sahara India Commercial Corporation Ltd SICCLas well as its then directors and associated entities from the markets and from associating with any public entity, relates to collecting funds between and from nearly 2 crore investors through through optionally fully convertible debentures OFCD without complying to regulatory norms.

Sebi sahara refund status

Apparently, this had resulted into a huge traffic jam on outskirts of Mumbai, where the regulator is headquartered. 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. While Sahara has been asked to refund the money to a special SEBI account under a Supreme 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 has been given to SEBI. The order, which bars the company, Sahara India Commercial Corporation Ltd SICCL , as well as its then directors and associated entities from the markets and from associating with any public entity, relates to collecting funds between and from nearly 2 crore investors through through optionally fully convertible debentures OFCD without complying to regulatory norms. Story SEBI orders Sahara Group to refund Rs 14, crore to investors The order states that the repayments must be done through non-transferrable bank demand draft or pay order. Sahara contested the case in various courts which eventually came to Supreme Court of India. And since August Sebi has only refunded Rs. In case of SICCL 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. March - Subrata Roy , along with two other directors of Sahara, sent to Tihar jail. Despite the double payment for single liability, Sahara India has been continuously depositing money of around Rs 20, crore including interest earned in Sahara-Sebi account. SICCL, Subrata Roy and others have also been directed to provide a full inventory of all the assets and properties and details of all bank accounts. The investigation into alleged money laundering has been slow, indicating the possibility of involvement of politically strong personalities in the money laundering activities.

By 31 August the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by 30 August the final order. The order states that 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 made through prescribed route and are certified by peer-reviewed chartered accountants.

Sahara ofcd

The new SEBI order comes at a time when the Sahara group is already struggling with the earlier case related to the capital markets watchdog asking two other Sahara firms in to refund over Rs 24, crore raised by illegally issuing bonds to nearly 3 crore people. Despite the double payment for single liability, Sahara India has been continuously depositing money of around Rs 20, crore including interest earned in Sahara-Sebi account. March - Subrata Roy , along with two other directors of Sahara, sent to Tihar jail. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability. Sahara to either to give sufficient bank guarantee or attach properties worth the amount raised through OFCDs. The order, which bars the company, Sahara India Commercial Corporation Ltd SICCL , as well as its then directors and associated entities from the markets and from associating with any public entity, relates to collecting funds between and from nearly 2 crore investors through through optionally fully convertible debentures OFCD without complying to regulatory norms. On October , a shocking revelation was made when only around 4, investors in two Sahara group companies had come forward to claim refunds from the Securities and Exchange Board of India Sebi , which had asked those who had purchased bonds issued by the entities to claim their money. Story SEBI orders Sahara Group to refund Rs 14, crore to investors The order states that the repayments must be done through non-transferrable bank demand draft or pay order. In case of SICCL 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.

Apparently, this had resulted into a huge traffic jam on outskirts of Mumbai, where the regulator is headquartered. On Octobera shocking revelation was made when only around 4, investors in two Sahara group companies had come forward to claim refunds from the Securities and Exchange Board of India Sebiwhich had asked those who had purchased bonds issued by the entities to claim their money.

sahara case explained

Sahara contested the case in various courts which eventually came to Supreme Court of India. Story SEBI orders Sahara Group to refund Rs 14, crore to investors The order states that the repayments must be done through non-transferrable bank demand draft or pay order.

Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability. Sahara's stand has been that the investors are not approaching SEBI for refund as they have already got their money.

Is sahara india closed

This gave a valid point to Sahara's argument before courts that it had repaid most of the investors who had come forward to claim the investment which they had made in bonds issued by two group companies. SICCL, Subrata Roy and others have also been directed to provide a full inventory of all the assets and properties and details of all bank accounts. The investigation into alleged money laundering has been slow, indicating the possibility of involvement of politically strong personalities in the money laundering activities. Furthermore, the market regulator SEBI advertised four times in more than newspapers to ask the investors of Sahara to refund the money. Sahara to either to give sufficient bank guarantee or attach properties worth the amount raised through OFCDs. While Sahara has been asked to refund the money to a special SEBI account under a Supreme 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 has been given to SEBI. But, the regulator said the company did not provide any proof for repayment through banking channels. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies ROC under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds. And since August Sebi has only refunded Rs. The income tax authorities had found that the beneficiary investors were existent and accordingly confirmed the repayments made in those particular years. The new SEBI order comes at a time when the Sahara group is already struggling with the earlier case related to the capital markets watchdog asking two other Sahara firms in to refund over Rs 24, crore raised by illegally issuing bonds to nearly 3 crore people. SEBI, however, rejected this submission, saying any private placement to more than 50 persons becomes a public offer. Despite the double payment for single liability, Sahara India has been continuously depositing money of around Rs 20, crore including interest earned in Sahara-Sebi account. March - Subrata Roy , along with two other directors of Sahara, sent to Tihar jail.
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