SEBI Update: Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch said that the capital markets regulator will continue the case against Sahara Group even after the death of Sahara founder Subrata Roy.
Sahara Group founder Subrata Roy died on Tuesday at the age of 75. He was ill for a long time. He said that for SEBI this matter is about the conduct of an entity and it will continue whether any person is alive or not. On the question of refund being very less, Buch said that the money has been returned through a committee appointed by the Supreme Court on the basis of evidence of claims made by investors.
What is the matter: On September 30, 2009, Sahara Group company Prime City had filed DRHP with SEBI for IPO. In the DRHP analysis, SEBI found shortcomings in the fund raising process of real estate and housing companies.
SEBI received complaints against Sahara
On December 25, 2009 and January 2010, SEBI received complaints that both the companies were raising money through optionally fully convertible debentures. These are debt securities that allow the issuer to raise capital and in return the issuer pays interest to the investor until maturity.
Raised Rs 24,000 crore from people
SEBI came to know that the company has raised Rs 24,000 crore from 2-2.5 crore people through this. SEBI asked why Sahara did not take its permission to issue the bonds? The matter reached the Supreme Court and in 2012, the court asked Sahara to give the details of investors to SEBI and return the money with 15% interest.
Case going on till date
In 2013, Sahara sent 127 trucks loaded with documents of OFCD holders to SEBI. Were in these trucks. This caused traffic jam on the outskirts of Mumbai. On February 28, 2014, the Supreme Court had asked Subrata Roy to return Rs 24,400 crore to investors. From then till today this case is going on.