Sahara India Real Estate Corporation and Sahara Housing Investment Corporation Ltd which are the two unlisted entities of the Sahara Group have been allowed by the Supreme Court to carry on with its public fund mobilizations. The court quashed the plea of SEBI, the capital market regulator, which pleaded with the court to prevent the two entities from fund mobilization. The Supreme Court bench which observed the proceedings concluded that investors are aware of risks associated with such schemes. At the same time the apex court instructed the company to give access to SEBI regarding the information that it was seeking. The two entities had floated the optionally fully convertible debentures (OFCDs) last year and SEBI is seeking information about investors who had subscribed to those. According to the SEBI counsel funds to the tune of Rs 4,800 crores has already been mobilized by the company through the OFCDs.
The two group companies were restrained initially from mobilizing public funds by SEBI following allegations that the entities had not disclosed its fund-raising plans in the Sahara Prime City’s draft red herring prospectus when it came out for initial public offering. SEBI acted on the information provided by investor activists about the lapse. They asked SEBI to put a hold on the offering till the company came out with full disclosures.
The two group companies were restrained initially from mobilizing public funds by SEBI following allegations that the entities had not disclosed its fund-raising plans in the Sahara Prime City’s draft red herring prospectus when it came out for initial public offering. SEBI acted on the information provided by investor activists about the lapse. They asked SEBI to put a hold on the offering till the company came out with full disclosures.
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