SEBI duty bound to take action against Sahara: SC

Business

oi-Sneha

By Sneha B K

Published: Saturday, October 20, 2012, 11:32 [IST]

Market Regulator SEBI was told by the Supreme Court today that it was duty bound to take action against the Sahara group for non-compliance of its directions relating to the refund of Rs24,000 crore raised from investors through optionally fully convertible debentures (OFCDs).

"SEBI has to take decision in accordance with the law. That is the duty of SEBI," a bench comprising justices K S Radhakrishnan and J S Khehar said when the market regulator complained that Sahara was not complying with the direction to hand over the documents and information about the investors as per the apex court direction.

The bench said the failure of the Sahara Group to furnish the documents about the investors within 10 days in accordance with its August 31 judgement amounts to "violation" of its directions.

"Time limit is there for ten days. You take your action. SEBI Act is there. You do whatever you want to do in accordance with the law," the bench told the regulator directing it to file status report on compliance of its order.

"What does this mean. Whether the two companies have placed all the information about the investors as per its directions. If not in ten days then you (SEBI) take action in accordance with law," the bench said.

Senior advocate Gopal Subramanium, appearing for the group, submitted that the companies are coordinating with the SEBI and more time is required for complying with its order.

Taking strong exception to his submission, the bench said that taking time more than ten days to furnish all the information to the regulator violates its order.

"It violates our order. You cannot by consent violate our order," the bench said and reminded the regulator that its judgement is clear on what it should do if the companies do not comply its order.

PTI