SEBI can take action against Sahara for not providing documents: SC
MDT/PTI 19 October 2012

While declined oral plea and submissions of Sahara seeking extension for providing the documents, the apex court said SEBI can take action against the Sahara group companies for non-compliance

New Delhi: The Supreme Court on Friday made it clear that the market regulator Securities and Exchange Board of India (SEBI) can take action against Sahara Group for non-compliance of its directions relating to the refund of Rs24,000 crore raised from investors through optionally fully convertible debentures (OFCDs), reports PTI.


A bench comprising justices KS Radhakrishnan and JS Khehar said that SEBI has the duty to take action according to law for non-compliance of its order.


The market regulator has moved an application alleging that Sahara Group was not complying with the apex court's 31st August directions in which it was also said that the company would provide all information and documents relating to the investors within 10 days.


The bench declined oral plea and submissions of Sahara seeking extension of time for providing the documents saying for that there was a need for an application containing written submissions.


On 31st August, the apex court had directed two Sahara group companies--Sahara India Real Estate Corp (SIREC) and Sahara Housing Investment Corp (SHIC)--to refund the amount that they had raised.


The court had said that SEBI can attach properties and freeze bank accounts of the companies, if they fail to refund the amount.


It had further directed Sahara to furnish all documents in their custody to the regulator within 10 days. The court had also appointed one of its retired judges Justice BN Aggarwal to oversee the action taken by SEBI.

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