Sahara firm ignored norms to raise funds, SC told
The Securities and Exchange Board of India (SEBI) told the Supreme Court that the Sahara firm had no right to mobilise Rs.27,000 crore from 30 million investors through debentures without adhering to the regulatory regime.
The firm raised money without complying with the regulatory regime of the stock market and listing on the bourses, said SEBI.
Senior counsel Arvind P. Datar, who appeared for the SEBI, told the apex court vacation bench of Justice K.S. Radhakrishnan and Justice J.S. Khehar that Sahara firm initially did it intentionally.
Sahara Housing Investment Corp Ltd is the other firm involved in the case.
Datar said that the entire amount the firm had mopped up from 30 million investors was unsecured.
The firm has been asked to refund investors’ money with 15 per cent interest in six weeks by Securities Appellate Tribunal (SAT).
To read more real estate news:
Ministry of Corporate Affairs Supports SEBI over Sahara
Source: Economic Times
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