More reports on: SEBI

Sebi begins fresh exercise to identify Sahara investors

25 August 2014

In a fresh attempt to identify investors eligible for refunds from the Sahara Group, the Securities & Exchange Board of India (Sebi) has asked all such persons to submit their claims by next month.

Those having invested in various bonds issued by the Lucknow-based Sahara India Real Estate Corp Limited (SIRECL) and Sahara Housing Investment Corp Limited (SHICL) have been asked by Sebi to submit their refund applications along with documentary proof by 30 September.

The move follows directions from the Supreme Court asking Sebi to facilitate refund to the bondholders of the two companies, which were found to have illegally raised more than Rs24,000 crore from nearly three crore investors across the country.

Sahara claims to have already repaid more than 93 per cent of the outstanding dues directly to the concerned bondholders and the remaining amount is just about Rs2,500 crore.

The Group deposited Rs5,120 crore with Sebi in December 2012 for refund to the investors in accordance with the court's orders. A further Rs3,117 crore was deposited with Sebi by the Group in June.

The capital markets regulator had begun the process last May for refunding the money to investors from the amount deposited by the Group till that time and issued public notices to invite claim applications. However, the refund made so far remains minuscule although the regulator has not so far made public the quantum of such payment.

Taking forward the refund process, Sebi has now issued a new public notice inviting bondholders of the two Sahara firms to submit their refund applications along with original bond certificates or passbooks, self-attested copies of identity and address proofs as also bank details for credit of refund amount directly into their accounts.

Sahara didn't comment on the new refund application process of Sebi, which said that it would entertain applications for Real Estate, Adobe and Nirmaan Bonds of SIRECL as also for Multiple, Income and Housing Bonds of SHICL.

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