scorecardresearch
Follow Us:
Friday, August 19, 2022

Sebi cancels Sahara’s mutual fund licence

Sebi directed Sahara Mutual Fund and Sahara Asset Management Company to stop accepting subscription from its existing or new investors with immediate effect.

Sahara, Sahara licence, Sahara licence cancelled, Sebi, Sebi Sahara, Sahara mutual fund, Sahara mutual fund licence, Sahara Mutual Fund certificate, Business latest news In the latest order, Sebi directed cancellation of Sahara Mutual Fund’s certificate of registration on expiry of a six- month period from Tuesday.

In a fresh crackdown on Saharas, regulator Sebi on Tuesday cancelled the registration of Sahara Mutual Fund saying it was no longer ‘fit and proper’ to carry out this business and ordered transfer of its operations to another fund house.

Sahara group has been engaged in a long-running regulatory and legal battle with Sebi ever since the regulator ordered refund of a massive amount of over Rs 24,000 crore by two Sahara entities. Recently, Sebi had also cancelled the Portfolio Management licence of a Sahara firm.

In the latest order, Sebi directed cancellation of Sahara Mutual Fund’s certificate of registration on expiry of a six- month period from Tuesday.

[related-post]

Subscriber Only Stories
Explained: Manish Sisodia raided by CBI, what is the alleged scam in Delh...Premium
Delhi Confidential: Rajeev Chandrasekhar takes a break from work for a sp...Premium
Hamid Karzai: ‘After Taliban takeover, I told Indian envoy not to l...Premium
Experts Explain: An India Blockchain PlatformPremium

Sebi also directed Sahara Mutual Fund and Sahara Asset Management Company to stop accepting subscription from its existing or new investors with immediate effect.

Besides, Sahara MF has been asked to “make efforts to ransfer the activities of Sahara India Financial Corporation Limited (Sahara Sponsor) and Sahara Asset Management Company Private Limited (Sahara AMC) to a new Sponsor and a Sebi- approved Asset Management Company at the earliest.”

Sahara MF’s Board of Trustees have been asked to “oversee and ensure protection of the unit-holders’ interests during the above period”. The Board of Trustees would need to be re-constituted after the transfer, Sebi said.

If Sahara MF fails to complete the process of transition within five months, it would have to compulsorily redeem the units allotted to its investors and credit the respective
funds to its investors, without any additional cost, within a period of 30 days thereafter and wind up the operations of the Mutual Fund.

Advertisement

In his 22-page order, Sebi’s Whole-Time Member Prashant Saran said: “Having held Sahara India Financial Corporation Limited (Sahara Sponsor) and Sahara Asset Management Company Private Limited (Sahara AMC) are not ‘fit and proper persons,’ I find that they have failed to fulfil the eligibility criteria to remain as the Sponsor and Asset Management Company respectively.”

As per the order, the various actions and proceedings against the group chief Subrata Roy, who is in jail for over a year now, and various other companies of Sahara Group results into Sahara AMC not being ‘a fit and proper person’ in accordance with the MF Regulations.

Sahara AMC has a total assets under management of Rs 134 crore and is the second smallest among the 44 fund houses in the country.

First published on: 28-07-2015 at 07:53:16 pm
Next Story

Sourav Ganguly recalls meetings with APJ Abdul Kalam

Featured Stories

Advertisement
Advertisement
Advertisement
Advertisement