Refund money raised via OFCDs with 15% interest: SEBI to Sahara
Market regulator SEBI today asked two Sahara group entities to return money collected from millions of investors through an instrument named Optionally Fully Convertible Debentures (OFCD), citing violation of regulatory norms. As per a Sebi order, Sahara Commodity Services Corp (earlier known as Sahara India Real Estate Corporation) and Sahara Housing Investment Corporation (SHICL) will be required to refund the money raised from hybrid instrument OFCD to investors along with 15 per cent interest.
The two companies and its promoter Subrata Roy Sahara, and the directors — Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary — jointly and severally, shall refund the money collected, the order said.
Besides, the regulator has also restrained the entities from accessing the securities market for raising funds, till the time payments are made to the satisfaction of the SEBI.
Although the total amount raised by the two companies is not known, Sahara Commodity has been raising money since 2008, while SHICL began fund collection in 2009. The companies have been collecting money through different schemes from investors which has been estimated at several millions.
“The companies have kept their issues open for more than three years or two years, as the case may be, in contravention of the prescribed time limit of ten working days under the regulations,” it said.
The two companies have failed to apply for and obtain listing permission from recognised stock exchanges, it said.
Source : Times of India
A Sahara India statement also said that Sebi has been vindictive and malicious towards the Sahara Group and this has been apparent from the chain of events, over the last one and a half years. “Over the last many years we have been facing a lot of oppressive, restrictive, unfair and unreasonable actions from various government authorities,” it said. It is definitely the prime duty of the government to go deep into the matter and do justice to us, said the statement.
It said investors are being ensured that there interest is protected. It also emphasized that the matter is still subjudice and there is no direction/ order of the Hon’ble courts against Sahara. The Sahara release claimed that in last 32 years of its operation, the Group has never acted against the law or the sprit of the law or earned even a rupee illegally. The release also went to add that “unjustified acts of various regulators, departments are now forcing us (Sahara) to come out with every detail…all names…at an appropriate time.”