New Delhi: The Securities and Exchange Board of India (Sebi) has asked Sahara India Commercial Corporation, Subrata Roy and the company’s other former directors to return over Rs 14,000 crore raised from millions of investors through optionally fully convertible debentures (OFCD) without complying to regulatory norms.
Besides barring these entities from the capital market for four years, Sebi has ordered them to refund the money along with 15% annual interest.
Sebi found that Sahara India Commercial Corporation (SICCL) had made the offer of OFCDs from 1998 to 2009 and raised an amount of at least Rs 14,106 crore from 1,98,39,939 investors.
The regulator, in 2011, already ordered two Sahara group firms — Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) — to refund the money raised from investors through the OFCD route.
”I am of the view that SICCL engaged in fund mobilising activity from the public, through the offer of OFCDs and contravened the provisions of ...the Companies Act,” Sebi Whole Time Member Madhabi Puri Buch said in a 54-page order passed on Wednesday.
Accordingly, the regulator ordered SICCL, Subrata Roy, O P Shrivastava, J B Roy, A S Rao, Ranoj Das Gupta, as well as legal representatives of late D S Thapa, late P S Mishra and late Y N Saxena, to jointly and severally refund the money collected by the company through the issuance of OFCDs along with an interest of 15% per annum.
According to the order, all these individuals were former directors of the company.
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