Sahara moves SAT against market regulator Sebi

Sahara Group on Monday moved the Securities Appellate Tribunal against market regulator Sebi, seeking more time to submit documents related to about three crore investors (30 million) in the case involving two group companies.

Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) have approached the tribunal.

The two entities have been directed by the Supreme Court to refund to their bondholders Rs 24,000 crore (Rs 240 billion) along with interest of 15 per cent per annum for violating norms in raising funds from public.

The companies have moved the tribunal asking it to direct Sebi to allow them time till January 31 to submit necessary

documents related to the case. The ten-day deadline set by the Supreme Court, in its order dated August 31, for the two entities to submit details of the concerned investors, has already expired.

In a public notice last month, Sebi had said that the two companies have not submitted the relevant documents to it and had also advised investors against yielding to any pressure from "Saharas or their agents" for switching over their investments in SIRECL and SHICL to other group companies.

Meanwhile, Sebi has decided to seek help from public sector banks and KYC Registration Agencies (KRAs) for carrying out 'in-person verification' of about three crore investors related to the case.

Sebi is already in the process of hiring outside investigating agencies to assist it in the matter involving two Sahara group companies.