Last week, the Securities and Exchange Board of India (SEBI), the market watchdog, delivered a notice to Sahara Group company Sahara Housing Investment Corporation, its CEO Subrata Roy, and other parties requesting that they pay Rs 6.48 crore within 15 days in a matter involving a violation of regulatory standards. Additionally, if they didn't make the payment, the regulator threatened to attach their assets and bank accounts. The entities were given the notice after they neglected to pay the fine that SEBI had assessed against them earlier in the year.
Last week, the Securities and Exchange Board of India (SEBI), the market watchdog, delivered a notice to Sahara Group company Sahara Housing Investment Corporation, its CEO Subrata Roy, and other parties requesting that they pay Rs 6.48 crore within 15 days in a matter involving a violation of regulatory standards. Additionally, if they didn't make the payment, the regulator threatened to attach their assets and bank accounts. The entities were given the notice after they neglected to pay the fine that SEBI had assessed against them earlier in the year.
Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava were fined a total of Rs 12 crore by the regulator in June 2022 for breaking regulatory rules when they issued optionally fully convertible debentures (OFCDs) on behalf of two Sahara Group companies, Sahara Housing Investment Corporation and Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation).
The issue concerns the issuing of OFCDs by Sahara Housing Investment Corporation and Sahara India Real Estate Corporation between 2008 and 2009. They obtained money through the public offering of securities by issuing OFCDs without adhering to the various norms imposed by SEBI that are meant to protect the interests of investors in public offerings. SEBI claims that the two companies solicited subscriptions for the OFCDs from the country's general public without adequately disclosing the risks associated with the instruments.
The issuance was done in violation of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and ICDR (Issue of Capital and Disclosure Requirements) Regulations of the SEBI. Sahara India Real Estate Corporation, Roy, Choudhary, Dubey and Bharrgava received a similar notification from the regulator in December 2022 requesting payment of Rs. 6.42 crore within 15 days.
Picture Credits - Outlook India
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