Ministry of Corporate Affairs Supports SEBI over Sahara
Sahara group of companies to face more trouble in future as ministry of corporate affairs (MCA) has expressed its support to market regulator Sebi’s June 23 order against the two companies of Sahara. Both Sebi and MCA work in tandem for protecting rights of small investors.
Securities Appellate Tribunal (SAT) is scheduled to hear the matter on Monday as per the directions of the Supreme Court on July 15 wherein the apex court had asked the Sahara group companies to approach SAT against the Sebi’s order.
“Sebi Act is a specialised act and Companies Act is a basic act. Therefore the Sebi Act should prevail over the Companies Act,” the ministry is believed to have written in the affidavit filed on August 26. The issue pertains to Sebi’s finding in November that two Sahara Group firms were raising funds from the public through Optionally Fully Convertible Debenture (OFCD) scheme without conforming to prudent disclosure and other investor protection norms.
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