Regulations
Sahara sends two truck-loads of papers to SEBI, third truck on its way!

SEBI is reportedly thinking about hiring a place or godown for storing these documents and has also asked Sahara to categorise all these papers in proper manner before submission

Market regulator Securities and Exchange Board of India (SEBI)'s woes with Sahara Group are growing as it sought to approach the Supreme Court on the business conglomerate's non-compliance to the 10th September deadline for submission of documentary evidence of money collected from investors through issue of debentures, reports PTI.

 

According to sources, SEBI is thinking about hiring a place or godown for storing these documents and has also asked Sahara to categorise all these papers in proper manner before submitting it to the market regulator.

 

Sahara Group is believed to have dispatched two truck-loads of documents to SEBI's headquarters in Mumbai on the issue related to Supreme Court-directed refund of Rs24,000 crore to an estimated three crore investors, while a third truck is said to be on its way and would reach on Thursday.

 

Officials at neither SEBI nor Sahara group were willing to speak specifically about the ongoing stand-off between them.

 

However, SEBI sources said Sahara did not comply with the 10th September deadline, set by the apex court, with regard to the money collected through an instrument called 'Optionally Fully Convertible Debentures (OFCDs).

 

Sources in the know said a truck full of documents containing such documents reached SEBI's headquarters on 10th September evening after the office hours, although the company sources claimed that the regulator was intimated hours in advance about their consignment being stuck at a toll gate on way to SEBI offices.

 

While the consignment was not received by SEBI as it reached after office hours, another truck full of documents reached SEBI offices on Tuesday and a third consignment is expected to reach there on Thursday, sources said.

 

While the officials say that SEBI is fully equipped to handle such high volume of documents, it may still seek the apex court's guidance on Sahara not meeting the deadline.

 

Speaking to reporters in Delhi recently, SEBI Chairman UK Sinha had said that that the regulator is fully equipped with any matter related to concern of shareholders and investors.

 

He was replying to reports about SEBI setting up a special 'Sahara cell' to deal with the case, wherein the Supreme Court has upheld the regulator's order directing the group to refund thousands of crore collected from investors with interest.

 

The apex court on 31st August directed two Sahara companies to refund around Rs24,000 crore to their investors within three months with 15% interest per annum.

 

It said that if the companies--Sahara India Real Estate Corp (SIREC) and Sahara Housing Investment Corp (SHIC) -- fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

 

The Court has also appointed one of its retired judges Justice BN Aggarwal to oversee SEBI's action in this regard.

 

Reacting to the court order, the Sahara group had assured its depositors and investors that their money is safe and there will not be any delay in payment commitment to them.

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COMMENTS

prerna

5 years ago

as my money is with sahara since 2005 jab paisa lagaya tab loan le k lagaya sahara ppl. per viswaas kerk. ab paisa mangte hai to 3,4 months k baad milega . paise ki jaroorat hai aur apna hi paisa ni mil pa ra . in 3,4 mahine me to paise ki tangi se hum suiside ker leenge aur jiska jimmewaar sahara INDIA PARIWAAR HOGA . AUR MR. SUBRORO ROY HONGE .MR. SUBROTO NE TO LAGTA HAI APNE PARIWAAR KO PAALNE SOCHTE HAI BAAKI KE NA TO PARIWAAR HAI NA HI BACHCHE. WE NEED OUR MONEY BACK BADLY.

REPLY

Vikas Gupta

In Reply to prerna 5 years ago

Whatever u say, there is no effect either on Subroto Roy or any of his employees.

anand desai

5 years ago

If you cannot Convince then Confuse.... This seems to be Sahara's strategy in dumping around a million sheets of crap papers . SEBI itself I doubt has the ability to browse through and understand. They will keep on dumping such stuff on the regulators thereby creating confusion; buying time and on the other hand technically being correct of having provided the info.Crazy Company'''' Crazier Regulator

Nem Chandra Singhal

5 years ago

SEBI would have think of it, before hand as it is dealing with private comapnies whose work culture are different than the Govt. Institutions. Not assessing such risks is the failure of SEBI. Always Danda will not work.

Vikas Gupta

5 years ago

Sahara Group Companies are 1 of the most Corrupted & manupulated group of India. I was working with Sahara as a Worker & I know the management & the Employees. They are the most corrupt ones right from Top to bottom.

Vinay Isloorkar

5 years ago

13.9.12

Attack, they say, is the best form of defence.The "emotionally yours" Sahara group has scored a point. Give the devil his due. Mt sympathies for the moment lie with Sahara.

Vinay Isloorkar, Pune

RBI relaxes ECB norms for infrastructure companies

The central bank allowed companies engaged in infrastructure sector to raise bridge finance from overseas market under the automatic route

 
Mumbai: Giving a boost to infrastructure sector funding, the Reserve Bank of India (RBI) has relaxed the external commercial borrowings (ECB) norms to help companies raise more funds from overseas markets, reports PTI.
 
The RBI has allowed companies engaged in infrastructure sector to raise bridge finance from overseas market under the automatic route.
 
"On a review, it has been decided to allow refinancing of such bridge finance (if in the nature of buyers'/suppliers' credit) availed of, with an ECB under the automatic route," the central bank said in a notification.
 
Under the earlier provision, the companies were required to take permission of the RBI for raising bridge finance, which is a kind of interim arrangement for short-term credit.
 
The Reserve bank through a separate notification, has also allowed companies in infrastructure sector to raise ECB up to a maximum period of five years for importing capital goods.
 
Under the new norms, the trade credit should not be for a period of less than 15 months and also not in the nature of short-term rollover finance.
 
Earlier, the companies could raise ECBs for a period ranging from one year to three years.
 
The RBI notification further said that the all-inclusive costs, which include arranger fee, upfront fee, management fee among others, of such borrowing should not be over 3.5% of six months Libor.
 
The credit facility would be available up to $20 million per transaction for import of capital goods as classified by the Directorate General of Foreign Trade (DGFT).
 
The Reserve Bank has also relaxed the ECB norms for repayment of Rupee loans within the overall ceiling of $20 billion.
 
As per the RBI notification, the permissible limit of ECB has been increased from 50% to 75% of the average foreign exchange earnings realised during the past three financial years or 50% of the highest forex earning in a year.
 
The limit of maximum ECB which can be availed by an individual or group company under the scheme has been pegged at $3 billion.
 
Earlier the maximum permissible ECB under the scheme was limited to 50% of the average annual export earnings realised during the past three financial years.
 

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SEBI wants greater say for investors in companies

Institutional investors can protect interests of minority shareholders by playing an active role in company decisions, says UK Sinha

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has said institutional shareholders should have a larger say in the functioning of Indian companies to help make the voice of investors heard at the right forum, reports PTI.
 
"We would be very happy, if we had a large presence of institutional shareholders in the Indian corporates," UK Sinha, Chairman, SEBI told reporters.
 
Speaking on the sidelines of a lecture on 'Making Companies' Boards More Effective and Accountable", organised by International Management Institute (IMI), Sinha said there is a belief that the matter is not giving the regulator the comfort that is required.
 
"Voice of retail investors is not getting addressed," he said.
 
Sinha said almost 50% of shareholding in India in top companies is with promoter group, which is very high, when compared globally.
 
FII and domestic institutional investors put together are less than 25% equity in the companies, but they have less than 2-3% representation on the boards, he said.
 
"In a situation like this, majority shareholders have their way. I am quite surprised pension funds are not allowed to invest in the market. If institutional investors play a role, minority interests are protected because the institutional investors give voice to minority shareholders," he added.
 
Asked about the reports of SEBI setting up a special 'Sahara cell' to deal with the Sahara case, wherein the Supreme Court has upheld the regulator's order directing the group to refund thousands of crores collected from investors with interest, Sinha said SEBI is fully equipped with any matter related to concern of shareholders and investors.
 
"This country has enough manpower and resources," he said.
 
On SEBI's long-pending demand to grant it access to call data records to assist it in stock market manipulation cases, especially the matters of insider trading, Sinha said the regulator has been told that a decision would be taken soon in this regard by the government.
 
"We asked the government that rule should be modified to make SEBI eligible for that. It is still under consideration by the government. SEBI has been told that a decision will be reached soon," he said. .
 
Speaking about the independent directors on the company boards, Sinha said the regulator is in favour of strict norms for their selection.
 
"I am more focussed on quality of independent directors and not on the number of independent directors. Many companies in India have taken advantage of extended family norms because the definition of independent director in the country is not clear.
 
"We need strict norms for selection of independent directors," he said.
 
Listing out the areas where SEBI is working with a long- term vision, Sinha said that the companies should disclose the agenda items of their AGMs on their websites and on the stock exchanges.
 
SEBI chairman also said that PSUs and private companies are treated separately for various regulations and the regulator wants "similarly placed companies to be treated similarly." 
 
"SEBI will also work on norms that will review the performance of independent directors," Sinha said.
 
 

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COMMENTS

siddharth biswal

5 years ago

i agree that it is not possible for MF's to vote on every resolution as it will add to the cost but MF's are silent on even promoter biased resolutions.There is a time to speak & there is a time to be silent & it should never be inter-changed.Had MF's been voting then cases like Indiabulls would have been limelight much earlier than be put forth by a foreign research house.I am ready to pay for the added cost rather than let my money be spent on dubious integrity co.Morever postal ballots or online voting can also be done if made an option by SEBI for MF's.Voting is imp because common investors don't have the expertise to analyze it.Its true proxy firms are creating all sort of noises to get noticed but its also true they wouldn't have been in the first place if MF's had been doing their job.By doing this MF's will be doing a service to all those haples investors still invested in dubious firms.Morever SEBI can always compensate MF's from investor protection fund expenses incurred for this.This will be one area where i can say idle funds best utilized.

siddharth biswal

5 years ago

if sebi is so much concerned about retail investors then it should make it mandatory for MF's to vote for every resolution or outsource it to professional firms just like in US.While MF's are getting all the support of SEBI in maintaining their income level they are not that forward in fighting for resolutions that are customer friendly.According to one fund house they prefer to shift their investment rather than fight a resolution.I hope SEBI is listening ?

REPLY

Sucheta Dalal

In Reply to siddharth biswal 5 years ago

We disagree. In fact SEBI has already asked mutual funds to vote on every resolution and publish their stand. This may sound good on paper but in India, it has only opened the doors to such outsourcing of proxy advice when the mutual fund industry itself is still unable to stand on its own feet and attract investors. Consequently, SEBI's order smacks of ulterior motives. Three proxy advisory firms have already sprung up to grab this opportunity. They put out their views but even blue chip companies such as Infosys and Wipro have ignored their advice regarding directors and auditors. Such toothless advice only adds to costs and will be at the cost of mutual fund investors. After all someone has to pay for the advice.
What is stranger is that SEBI's on ex- executive directors and lawyers are employed by some of these firms.
Makes us wonder whether SEBI's Executive Directors in the C B Bhave regime created job opportunities for themselves through this order.

Chandragupta Acharya

5 years ago

Promoters should not be allowed to vote on Resolutions appointing Auditors. It is a clear case of conflict of interest

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