SEBI Overlooking Hard Facts, Orders Against Spirit of Justice - Sahara India Group
The latest development between Sahara Group and SEBI
In the latest development between Sahara Group and SEBI, The new twist was added in a row, on Friday 2nd November, when SEBI has ordered the conglomerate to refund Rs.14,000 Crores that it raised from the public as deposits.
The very next day Sahara India Group has blamed the market regulator of ‘overlooking the hard facts’, calling it against the spirit of Justice adding that the situation which was predominant in 1998 when the company issued OFCD’s. According to the company it has done everything as per the law and after all required permissions from the Government establishments.
Explaining further, The Sahara Group said: “In the year 1998, SICCL (Sahara India Commercial Corporation Ltd.) had taken the written permission from the Registrar of Companies, which comes under the Ministry of Corporate Affairs, for the first time for issuing OFCDs. Then we got two more such permissions in 2009 for Sahara Real Estate and Sahara Housing from all the able authorities, regarding which a case is going in the Honorable Supreme Court.
What is OFCD’s?
Operationally fully convertible Debentures is a hybrid product which can be converted into shares at the certain period of expiry at a predetermined price depending upon the wish of an investor.
The Sahara Group said SICCL has already discharged all its OFCD liabilities except for Rs.17 Crores as outstanding OFCD liability towards 54,804 members. “The TDS deducted on the interest paid has been deposited with the income tax department. Hence the order makes it a case of double payment for the liability, which SICCL has already discharged”.
According to the conglomerate, its issue was opened on 6th July, 1998, when the issue of such securities was not limited to less than 50 people as compared to the current stock trend.