Sahara moves SC against SAT order

SAT had also given a nod to Sebis order asking both the companies and their promoters and directors to refund the entire proceeds of its OFCDs to investors with 15 per cent interest.

The Sahara entities had raised nearly Rs 17,656.53 crore as on August 31,2011 via the OFCD scheme.

The tribunal further said that the market regulator had jurisdiction to regulate OFCDs issued by the Sahara companies as they are securities and it was a public issue requiring mandatory listing,a stand refuted by Sahara.

Sahara had maintained that Sebi had no jurisdiction over unlisted public companies and only the Central government can regulate them. SAT in its October judgment stated the fact that the information memorandum was circulated to more than 30 million persons through 10 lakh agents and more than 2,900 branch offices was nothing but advertisement to the public.

Withholding this was evidence that the company concealed vital facts and that disclosures made in the red herring prospectus were not true and fair,it added. FE