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Capital markets regulator SEBI will continue the case against Sahara Group even after the death of Sahara founder Subrat Roy. Speaking to reporters at a FICCI event, Securities and Exchange Board of India Chairperson Madhabi Puri Buch said that for SEBI, the case is about the conduct of an entity and it will continue whether a person is alive or not. Let us tell you that Sahara Group founder Subrat Roy passed away on Tuesday. He was ill for a long time.
What is the matter: On September 30, 2009, Prime City, a Sahara Group company, filed a DRHP with SEBI for an IPO. In the DRHP analysis, SEBI found loopholes in the fundraising process of real estate and housing companies.
Also read: Will investors’ money go away after Saharshree Subrata Roy’s death?
SEBI received complaints against Sahara
On December 25, 2009 and January 2010, SEBI received complaints that the two companies were alternatively raising money through fully convertible debentures. These are debt securities that allow the issuer to raise capital and in return the issuer pays interest to the investor until maturity.
Collected 24,000 crore rupees from people
SEBI learned that the company has raised Rs 24,000 crore from 2-2.5 crore people through this. SEBI asked why Sahara did not seek permission to issue bonds? The matter reached the Supreme Court and in 2012 the court asked Sahara to provide details of the investors to SEBI and return the money with 15% interest.
The case continues till date
In 2013, Sahara sent 127 trucks loaded with documents of OFCD holders to SEBI. These were in trucks. Due to this, the traffic in the outer areas of Mumbai was jammed. On 28 February 2014, the Supreme Court asked Subrata Roy to return Rs 24,400 crore to investors. The case has been ongoing since then.
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