Sucheta Dalal :A different version
Sucheta Dalal

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A different version  

January 19, 2011

Contrary to what has been reported, according to a Supreme Court order, Sahara will have to share information with SEBI

The shadowy Sahara group made quite a splash when it belligerently reacted to SEBI’s order barring the group from raising funds. It issued colloquially-worded media advertisements accusing the regulator of issuing an ‘irresponsible & wrongful’ order that encroached on the turf of the ministry of corporate affairs in barring its unlisted group companies from issuing optionally fully convertible debentures (OFCDs). It then obtained a stay from the Allahabad High Court which was challenged by the regulator in the Supreme Court. The media reported that the apex court had dismissed SEBI’s appeal and the bar on Sahara was rejected. But it now transpires that the court order is not such a slap on SEBI’s face after all. Although Sahara can raise funds, a Supreme Court bench said, “We make it clear that SEBI is entitled to call for any information which it deem to fit including names of the investors who have invested in OFCDs,” (PTI). This was the real bone of contention since Sahara had refused to share  information with the regulator, claiming that it was outside SEBI’s jurisdiction to ask for it. Will it now comply with SEBI’s demands? Well, if it wants to go ahead with its initial public offering for Sahara Prime City Ltd, it doesn’t have much choice. —
Sucheta Dalal


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