Regulations
SEBI to hire investigating agencies for Sahara case

SEBI has issued tender inviting applications from professional investigating agencies for empanelment for conducting investigations in the Sahara case

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) plans to hire professional investigating agencies to help it probe matters relating to Sahara group for implementation of a Supreme Court order about refund of money collected from three crore investors, reports PTI.
 
SEBI has already asked these investors against yielding to any pressure from "Sahara or their agents" for switching over their investments in two Sahara companies -- SIRECL and SHICL -- to other group companies.
 
The Supreme Court on 31st August had directed the two Sahara group companies to refund investors' money worth Rs24,000 crore within three months with 15% interest per annum for violating norms in raising funds from the public.
 
Now, SEBI has issued tender inviting applications from "professional investigating agencies for empanelment for conducting investigations in pursuance with the implementation of the Supreme Court order dated 31st August..."
 
The tender coincides with a public notice issued by SEBI, wherein it said that Sahara has not submitted the relevant documents to it and the regulator has been receiving complaints of investors being forced to switch to schemes in its other Sahara group companies.
 
The market is already abuzz with speculations that the regulator is looking to appoint a Registrar and Transfer Agent (RTA) to handle data processing work for this particular case.
 
SEBI floated tender for appointment of an RTA late last month and held pre-bid meeting with the potential bidders on 15th October, but the regulator has not disclosed so far that the concerned data processing work relates to Sahara case.
 
In the pre-bid meeting, SEBI informed the interested bidders that the work relates to three crore application forms pertaining to subscription towards bonds.
 
As per the tender, RTA would have to process application forms and other records of about three crore beneficiaries and an estimated 30 crore documents, consisting of application forms and related papers.
 
The RTA would need to create and maintain an electronic database of three crore beneficiaries, scan documents running into 30 crore pages, provide toll-free help line facility and a grievance redressal mechanism for these investors.
 

User

COMMENTS

megha

4 years ago


Sahara does not drive to raise money though convertible debentures issued by enlisted entities.

How can a company like Sahara break the trust of its investors? Sahara istruly a reputed company and they have surely fulfilled all their promises till date. It has been working for the past 33 years and have always maintained their goodwill and position in the market.

arvindkumar baid

4 years ago

Income Tax Department / CBDT which harasses common men for a lit bit problem in tax return filing has not taken a step for verifying the Sahara Records on the basis of remark by Supreme court. I think department thinks Rs. 24000/- as a small amount.I think all the political parties are accomplice to this sahara party. None of them have spoken a single word in this matter. Even all media houses (except moneylife ) have given a detailed analysis of this entire episode. Sahara must have given a good amount to all media honchos or they are having relation like gadkari and sarad pawar (char kam hum unke karte hain aur char kam wo hamare karte hain). This is the only reason that middle class or low income group investors have not got knowledge of the effect of supreme court judgement. They are just transferring their investing in sahara companies to its new found co-operative society or Q shop at the behest of their trusted agents and no one is their to inform them. Even sebi has not given its public notice in all the newspapers it has just given notice in some newspapers to show it is taking some steps and thereby giving time to Sahara to coverup the issue. In this matter we can say that Sahara was very quick in deceiving people by giving add in that emotionally speaking manner stating that it is possible for them to refund the entire amount within 2 days and thereby fooling the investors about its strength.

More reforms for protecting investors: SEBI

Sinha said SEBI has to balance the needs of the retail investors and also to encourage people...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
The new political nexus

If you were wondering why most of the recent major cases of corruption have not been exposed...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)