Sebi can take action against Sahara firms if they fail to follow order: SC

The Supreme Court on Friday said that the Securities and Exchange Board of India (Sebi) was at liberty to act as per law and take appropriate action against the two Sahara Group

Written by Express News Service | New Delhi | Published: October 20, 2012 12:58:04 am

The Supreme Court on Friday said that the Securities and Exchange Board of India (Sebi) was at liberty to act as per law and take appropriate action against the two Sahara Group companies should they breach the court’s order to furnish details of investors,from whom Rs 24,000 crore was raised using the Optionally Fully Convertible Debentures (OFCDs) scheme.

On a plea by Sebi against Sahara’s failure to supply the relevant documents by the September 10 deadline,a Bench led by Justice KS Radhakrishnan told the market regulator that their order was very clear in respect of the time period within which the relevant documents were to be submitted by Sahara Commodity Services Corporation Limited and Sahara Housing Investment Corporation Limited.

“If these two companies want to show that the investors are genuine,they had to show in 10 days (from 31 August last,the date of judgment). How can any document submitted now be taken account of…” observed the court,adding that Sebi had now to follow their order of taking action as prescribed under the law. “We don’t want to monitor this… This is a disposed of case. Implement our orders. We can’t pass any orders now,” said the Bench while asking the Sebi to file status report on the issue.

The court also refused to hear oral submissions of Senior Counsel Gopal Subramanian,appearing for Sahara Group,seeking more time to place the documents with Sebi. The court was hearing an application filed by Sebi against the Sahara Group accusing it of not complying with the court’s previous order.

For all the latest News Archive News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement