10 December 2013
1)Between 2008 and 2011, two unlisted Sahara group companies (SCSCL and SHICL) raised around Rs 18,000 Cr issuing OFCDs (Optionally Fully Convertible Debentures) to roughly 30 million shareholders. In 2011, SEBI ordered the group to refund this money to investors with 15% annual interest. This order was upheld by the Supreme Court.
2)SEBI asked Sahara to refund investors because it felt Sahara was raising money in violation of capital raising norms and certain sections of the Companies Act. SEBI found that under the garb of an OFCD the company was running an extensive parabanking activity without conforming to regulatory disclosures and investor protection norms pertaining to public issues.
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