Sebi has moved the Supreme Court against a High Court order staying the market regulator’s ban on a Sahara group firm to raise funds from the public. Sebi’s petition is likely to be taken up by the apex court tomorrow for consideration.
Earlier on December 13, the Allahabad High Court had stayed an order of SEBI restraining Sahara India Real Estate Corporation from accessing public funds. The Lucknow bench of the high court comprising Justice Devi Prasad Singh and Justice Virendra Kumar Dixit had passed the order on a writ petition filed by the Sahara group entity.
The court, while admitting the writ petition of Sahara India for peremptory hearing, directed the Registrar of companies (ROC)/central government to proceed with the matter at their end, investigate in the interest of shareholders and submit a status report by January 12 2011.
‘Sebi can seek necessary info from Sahara firms’
The Supreme Court today said Sebi was entitled to seek all necessary information from two Sahara group firms on how resources were being raised but refused to stay the companies’ ongoing fund-mopping exercise. The apex court was hearing market regulator’s petition against an Allahabad High Court order staying Sebi’s ban on two Sahara group firms, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation from raising funds from the public through OFCDs (Optionally Fully Convertible Debentures).
A bench headed by Chief Justice SH Kapadia said that SEBI can call for information from the two Sahara group firms regarding their investors.
“We make it clear that Securities and Exchange Board of India (SEBI) is entitled to call for any information which it deem to fit including names of the investors who have invested in OFCDs,” the bench said.