SEBI Fines Sahara Group Firm, Subrata Roy Rs 6.48-Crore for Flouting Norms

Sebi (Securities and Exchange Board of India) today sent a notice to Sahara Group firm Sahara Housing Investment Corporation, its chief Subrata Roy, and others, asking them to pay Rs 6.48 crore within 15 days in a case pertaining to flouting regulatory norms..Also, the regulator warned of attachment of assets and bank accounts, if they fail to make the payment..The notice came after the entities failed to pay the fine imposed on them by Sebi..The regulator, in its order in June, levied a fine totalling Rs 12 crore on two Sahara Group firms -- Sahara Housing Investment Corporation and Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation) -- and Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava -- for violating regulatory norms in the issuance of optionally fully convertible debentures (OFCDs)..The case relates to issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation during 2008-2009. They raised money through public issue of securities by issuing OFCDs without following the various procedures intended to protect the interest of the investors, in respect of public issues, prescribed under the norms, as per Sebi..According to Sebi, the subscription towards the OFCDs was solicited by the two companies from the general public in the country, without adequately informing them about the risks involved in the instruments..The issuance was allegedly done in contravention of the provisions of the Sebi's ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices)..In its notice on Thursday, Sebi directed Sahara Housing Investment Corporation, Subrata Roy, Choudhary, Dubey and Bharrgava to pay Rs 6.48 crore, which includes penalty amount of Rs 6 crore along with interest and recovery cost, within 15 days..In the event of non-payment of dues, the markets regulator will recover the amount by attaching and selling moveable and immoveable property of the entities. Besides, they face attachment of their bank accounts..Also, the regulator takes the route of arrest and detention in prison to recover the amount..In December, the regulator had sent a similar notice to Sahara India Real Estate Corporation, Roy, Choudhary, Dubey and Bharrgava and asked them to pay Rs 6.42 crore within 15 days..(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

SEBI Fines Sahara Group Firm, Subrata Roy Rs 6.48-Crore for Flouting Norms

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