Sahara ruling exposes regulators caught off guard
The recent Supreme Court ruling against Sahara Group implies an indictment of not only Sahara but the regulatory system as a whole.
Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) were instructed by the Supreme Court to refund over Rs 24,000 crore collected through optionally fully convertible debentures (OFCDs). Sahara case has brought discrepancy between regulators out in the open.
Security and Exchange Board of India (Sebi) cannot take full credit for cracking the case since Sahara’s efforts to bypass the law were not discovered by the market watchdog but were exposed through filling of red herring prospectus by Sahara.
Hence, the market pundits have held ministry of corporate affairs at the centre along with Sebi as being caught off guard.
Ministry of Corporate Affairs, optionally fully convertible debentures (OFCDs), Red Herring Prospectus, regulatory system, Sahara Group, Sahara group of companies, Sahara Housing Investment Corporation (SHIC), Sahara India Real Estate Corporation (SIREC), Securities and exchange board of India(Sebi), Supreme Court, Supreme Court ruling
[...] Sahara ruling exposes regulators caught off guard [...]