During an interaction with reporters at a FICCI event, Madhabi Puri Buch, the chairperson of Sebi, clarified on Thursday that, for Sebi, the Sahara matter will continue for the capital markets regulator despite the demise of Subrata Roy, the group's founder.
Ms. Buch reiterated that, for SEBI, the focus is on the conduct of the entity, She added that it will continue irrespective of the presence of an individual. In Mumbai, on Tuesday, Subrata Roy, the founder of the Sahara group, passed away at the age of 75, after a prolonged illness.
Also Read : Sahara Group Founder Subrata Roy Sahara has passed away, age (vygrnews.com)
In response to queries about the relatively low refunds, Buch explained that the funds were repaid based on the evidence presented by investors. This process was overseen by a Supreme Court-appointed committee.
Reportedly, only Rs 138 crore in refunds have been disbursed to investors, despite Sebi instructing the Sahara group to deposit over Rs 24,000 crore for additional reimbursements.
Sahara group encountered various accusations, including allegations of operating a Ponzi scheme. The challenges for Subrata Roy began in November 2010 when the Securities and Exchange Board of India (SEBI) directed two Sahara entities to refrain from raising funds through equity markets or issuing securities to the public. Roy was also barred from seeking public contributions for fundraising.
In 2014, the Supreme Court issued orders for Roy's arrest due to his failure to appear in a contempt case related to the non-refund of over Rs 20,000 crore to investors by the two companies. Despite being granted bail, difficulties persisted for his various businesses.
Photo: Tribune India
The two Sahara group companies, SIRECA and Sahara Housing Investment Corporation, raised funds in 2007-08 through OFCD, leading to Sebi's directive for a substantial deposit of around Rs 24,000 crore for further investor refunds.
In June 2011, the regulatory authority for capital markets instructed the two entities to repay the funds amassed from investors via Optionally Fully Convertible Debentures (OFCD) along with the corresponding returns.
Following an extended process of appeals and cross-appeals, the Supreme Court, in 2012, mandated the refund of deposits to investors along with a 15 percent interest.
Sahara was asked to deposit an estimated Rs 24,000 crore with Sebi for further investor reimbursement, despite the group asserting that this constituted "double payment," as they claimed to have already directly refunded over 95 percent of investors.
©️ Copyright 2023. All Rights Reserved Powered by Vygr Media.
