SEBI cautions Sahara group investors

N. S. Vageesh Mumbai | Updated on March 12, 2018

A view of SEBI office in Mumbai.

The Securities and Exchange Board of India (SEBI) has said that Sahara companies — Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) — have not submitted the relevant documents ordered by the Supreme Court.

It also said that it has received complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investment to other schemes in Sahara group companies such as Sahara Q Shop Unique Products Range and Sahara Credit Cooperative Society Ltd. Some investors have complained that the switchover has happened without their consent.

SEBI has cautioned subscribers to the bonds of SIRECL and SHICL to hold on to the original documents relating to their investments, produce the same to SEBI when called for and not yield to any pressure from any persons including Saharas.

On August 31, the Supreme Court had ordered the two Sahara companies to refund the amount collected by them through the red herring prospectus in 2008 and 2009. It had also asked them to deposit all the documents to SEBI, which would identify the subscribers and refund the amount to them. The amount to be refunded is Rs 17400 crore plus interest.

Appointment of investigative agencies

SEBI has also called for empanelment of investigating agencies for conducting investigations in pursuance of the August 31 order.

Published on October 27, 2012

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