Sahara Directed to Refund Rs. 24k cr

Presented by-Group 5 

Sagar Devarkar R-11-06

Sahil Nerurkar R-11-23

Priti Pai Kakode R-11-24

Sharmad Pai Kane R-11-25

Sheldon Rebello R-11-30

Fakhruddin Ayam R-11-37

 

ContentsIntroductionSEBISATRHP OFCDsCaseNature of OFCDsAnalysis Current Situation Our StandConclusion

IntroductionSahara India Pariwar

Sahara India Real Estate Corporation (SIREC)

Sahara Housing investment Corporation (SHIC)

SEBISecurities and Exchange Board of India

Have to be responsive to the needs of three groups

Has been invested with the necessary powers for the discharge of its functions efficiently

SATSecurities Appellate Tribunal

According to this, hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the Act.

To exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

Red Herring ProspectusDocument submitted by a company as part of

a public offering of securities.

Filed with the SEC

Issued to potential investors

Optionally Fully Convertible Debentures (OFCDs)

Debt securityTo convert his debenture into equity share.Does not have interest in period of 6 months.

After that holders of OFCDsApply for equity shareThe option has to be in the application form.No additional amount needs to be paid.

CaseBackground

Role of SEBI: Securities exchange board of IndiaSAT: Securities Appellate Tribunal

Justification by Sahara

Judgment by supreme court

Nature of OFCDsThere are tow type of OFCDS

Public Private

Sahara’s OFCD is faced on “hybrids”Issued to 66 luck from different it’s brunches. No issue of security.

Companies Act 2(19A) “Hybrids”Any security which has the character of more than one type of

security, including their derivatives.

Analysis

Raising of money

On what basis did Sahara challenge SEBI’s power

Issue was outside SEBI's jurisdiction

The Two companies were Unlisted

OFCD’s are not securities

The issue made was a private placement

SEBI in its defense Issue involving 50 or more people to be public issues

  All public issues should go through SEBI framework

  Just disclaimers can’t ward away SEBI

  Conduct, not statements, determines whether an issue is

public 

SEBI has powers to take any step to protect investor

Supreme court decision

Sahara directed to refund around Rs 24,000 crore to their investors within three months with 15 per cent interest per annum.

What if Sahara fails to refund?

SEBI can attach properties and freeze bank accounts of the companies.

Is Sahara capable of Refunding?Yes, it is

Sahara’s statement

Sahara's track record

Sahara’s assets

Current Situation

Sahara has filed Review petition

To uphold its image

The group's commitment to refund Prevails

“All our inverters are genuine”

OUR STAND

The decision of the Supreme Court is Justified

ConclusionIt is a very good judgment

Act as a deterrent those unscrupulous promoters

Fight given by SEBI commendable

Thank You