The order of cancellation of the certificate of registration will come into effect on the expiry of six months from the date of this order
SEBI
MUMBAI: In a fresh crackdown on the Sahara Group, the market regulator Securities and Exchange Board of India (Sebi) has ordered the cancellation of certificate of registration of Sahara MF stating that it is not a ‘fit and proper’ person to carry on the mutual fund business. Restraining the fund house from accepting any new subscriptions, the regulator has asked Sahara MF to transfer all the units to another fund house approved by Sebi within a period of six months. The order of cancellation of the certificate of registration will come into effect on the expiry of six months from the date of this order.
Sahara group is engaged in a long legal battle with Sebi after the regulator directed two group entities to refund the money collected through the issue of optionally fully convertible debentures (OFCD) from the investors. The amount of refund stood at around Rs 24,000 crore. The promoters and directors of Sahara group including its chief Subrata Roy Sahara were restrained from associating themselves with any listed public company and any public company, which intends to raise money from the public, till such time the aforesaid payments were made.
In its order, Sebi noted that Sahara AMC and Sahara Sponsor are part of Sahara group. “Considering the shareholding of Subrata Roy Sahara, it can be said that he holds a responsible position in Sahara Sponsor and that he is also capable of exercising control and influence over the management and appoint majority of the directors on the board of the said company,” said Sebi.
( Source : deccan chronicle )
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