Sahara India raised approximately 24,000 crore rupees from around 2-2.5 crore investors through optionally fully convertible debentures issued by two of its group companies, but SEBI alleged this was an illegal public issue requiring registration. The Supreme Court ultimately ruled in favor of SEBI and ordered Sahara to refund the entire amount plus interest to investors. Subrata Roy, chairman of Sahara, was jailed for nearly two years for contempt of court after initially failing to comply with refund orders until significant funds were eventually repaid to SEBI.
Sahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
The Sahara India Pariwar investor fraud case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it.
ahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
SEBI in return ordered Sahara's two companies to stop issuing the said bonds and return money to investors. Sahara contested the case in various courts which eventually came to Supreme Court of India. On June 14, 2012, (during the final hearing of the case), the group had provided details of its financials up to April 30, 2012. While the court reserved its order, Sahara claims that it has already paid to 93% of the investors and discharged its OFCD liability to the tune of Rs. 23500 crores and only around Rs. 2260.69 crores are left against which Sahara has already deposited more than Rs. 12,000 crore which has with interest swelled to Rs. 16000 Crore. By August 31, 2012 the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by August 30, 2012 the final order. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability.
Sahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
The Sahara India Pariwar investor fraud case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it.
ahara - SEBI case is the case of the issuance of Optionally Fully Convertible Debentures issued by the two companies of Sahara India Pariwar to which Securities and Exchange Board of India had claimed its jurisdiction and objected on why Sahara has not taken permission from it. Sahara has claimed that the said bonds are hybrid product, thus does not come under the jurisdiction of SEBI, instead is governed by Registrar of Companies (ROC) under Ministry of Corporate Affairs, from which the two companies of Sahara has already taken permission and submitted the red herring prospectus with ROC before issuing the bonds.
SEBI in return ordered Sahara's two companies to stop issuing the said bonds and return money to investors. Sahara contested the case in various courts which eventually came to Supreme Court of India. On June 14, 2012, (during the final hearing of the case), the group had provided details of its financials up to April 30, 2012. While the court reserved its order, Sahara claims that it has already paid to 93% of the investors and discharged its OFCD liability to the tune of Rs. 23500 crores and only around Rs. 2260.69 crores are left against which Sahara has already deposited more than Rs. 12,000 crore which has with interest swelled to Rs. 16000 Crore. By August 31, 2012 the date of Supreme Court order, the group repaid majority of its OFCD investors between May the last date of hearing and by August 30, 2012 the final order. Since these repayments have not been taken into consideration, Sahara maintains that any money paid now will obviously mean a double payment towards one liability.
This was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta scam. Ketan Parekh is a former stock broker from Mumbai,who was convicted in 2008, for the involvement in India stock market manipulation,that occured from late 1998 to 2001.
HERE IS THE PPT ON PNB SCAM
NIRAV MODI
WE MADE IT BASED ON EARLIER FACED FRAUD BY PNB
FRAUDSTER NAME IS NIRAV MODI
I THINK IT WILL CLEAR ALL YOUR DOUBTS ABOUT SCAM
ppt on Nirav Modi or PNB scam with all details till 2020
the data is collected from Wikipedia, articles, and videos available on youtube and other platforms.
This was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta scam. Ketan Parekh is a former stock broker from Mumbai,who was convicted in 2008, for the involvement in India stock market manipulation,that occured from late 1998 to 2001.
HERE IS THE PPT ON PNB SCAM
NIRAV MODI
WE MADE IT BASED ON EARLIER FACED FRAUD BY PNB
FRAUDSTER NAME IS NIRAV MODI
I THINK IT WILL CLEAR ALL YOUR DOUBTS ABOUT SCAM
ppt on Nirav Modi or PNB scam with all details till 2020
the data is collected from Wikipedia, articles, and videos available on youtube and other platforms.
The documentary is a case study in itself, showcasing the darker side of wealth and power. It sheds light on how some of these individuals resorted to unethical and illegal practices to gain their riches, including fraud, money laundering, and bribery.
The three major financial Scams that shook the economy of India and Financial sector,
- The Satyam saga
- The Sahara Scam
- Saradha chit fund embezzlement
This pdf briefly explains how the scams were unearthed and brought to light.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
2. What is a Debenture?
A debenture is a medium to long term debt
instruments used by large companies to
borrow money, at a fixed rate of interest.
There are two types of debentures
Convertible
Non convertible
3. What is convertible debentures?
Convertible debentures, which are
convertible bonds or bonds that can be
converted into equity shares of issuing
company after a predetermined period of
time.
When debentures is converted into shares, it
means debt holder becomes an equity holder.
4. What is OFCD?
The Optionally Fully Convertible Debenture
is a kind of debenture which can be converted
into shares at the expiry of a certain period at
a predetermined price, if the debt holder
(investor) wishes to do so.
OFCD are hybrid in nature and as defined u/s
2(19A) of companies act, 1956 “hybrid”
means any security which has the character
of more than one type of security, including
their derivatives.
5. SAHARA PARIVAR
INTRODUCTION:
Type : private company
Industry : conglomerate
Founded : 1978
Founder : Subrata Roy (chairman)
Headquarters : Lucknow, India.
6. Background of Sahara case
The case all began when a CA in Indore sent a note
to the National Housing Bank, requesting the bank
to look into the housing bonds issued by 2 Sahara
group companies, Sahara India Real Estate Corp.
(SIREC) and Sahara Housing Investment Corp.
(SHIC), having there headquarters in Lucknow. He
found that the bonds that had been issued to a large
number of investors had not been issued as per the
rules.
The National Housing Bank did not have the
wherewithal to investigate the allegation, so it
forwarded the letter to the SEBI, the capital market
regulator.
7. Cont…….
Mr. Abraham who was the then Director of
SEBI was reviewing the Draft Red Herning
Prospectus (DRHP) to raise equity for real
estate company Sahara Prime City Ltd.
through an initial public offering (IPO).The
DRHP disclosed details of 2 associate group
companies (SIREC and SHIC) that were
raising huge amounts of money from the
public through OFCD.
8. Details of the case
Sahara India has 2 companies SIRECL and SHICL
that issued OFCD through subscriptions from
investors
Raised 24000 crore from investors
The purpose of issue was to carry out
infrastructural activities namely, constructing
the bridges modernizing or setting up of
airports, rail system or any other projects which
may be allotted to company
As per sahara issue of OFCDs was private
placement.
9. However, amount collected from about 2 to 2.5
crore investors in the disguise of a private
placement.
Later sahara prime city ltd intended to raise
funds through listing of its shares filed
prospectus
10. SEBI received the complaint from CA Roshan
Lal from Indore on 4th Jan 2010 that,
sahara is an unlisted company and
collecting huge money from public issue by
means of OFCD and there existed a pending
dispute between the income tax department
and sahara for collecting public money by the
way of OFCD.
11. The whole time member of SEBI Mr.
K.M.Abraham (IAS officer) passed an order
dated 23rd June, 2011 directing the 2 companies
to refund the money so collected to the
investors.
Also restrained the promoters of the 2
companies SIRECL and SHICL including Mr.
Subrata Roy from accessing the securities
market till further orders.
Sahara then preferred an appeal before
Securities AppellateTribunal(SAT) against the
order.
SAT confirmed and maintained the order of SEBI
by an order dated 18th October, 2011.
12. Subsequently sahara filed an appeal before
the supreme court of India against SAT order.
Supreme court directed refund of Rs 24000
crore to an estimated 2 to 2.5 crore investors.
But suddenly sahara said it had repaid about
90% of the money over the last one year.
Supreme court ordered the sahara to give
detailed information about the investors to
SEBI for verification.
13. Sahara group dispatched 3 truck loads to SEBIs
headquarters
Supreme court appointed one of its retired
judges Justice B.N.Aggarwal to oversee SEBIs
action in this regard.
14. Sahara’s contention
Issue of OFCD is legal.
Issue of OFCD’s is not a public issue.
OFCD are shares nor debentures but hybrid
class.
OFCD’s are hybrid instruments which cannot
be listed.
Serious error is committed by SEBI.
No statutory requirement to list OFCD.
15. SEBI’s contention
OFCD was public issue.
OFCD’s were transferable securities
Violation of sec 67 of companies act
Did not submit balance sheet and P&L
account to the concerned ROC.
16. Supreme court contention
Aggrieved sahara appealed to SAT
Passed order in favor of SEBI
Aggrieved sahara again moved towards
supreme court
Finally , supreme court passed the judgment
in favor of SEBI
Ordered sahara to repay the Rs 24000 crore
with 15% interest.
17. Supreme court allowed sahara to pay whole
amount in 3 installments
120 crore immediately, 10000 crore in January
2013 and remaining amount by February 2013
But by February they failed to pay second and
third installments.
SEBI after getting permission from supreme
court froze all bank and demat accounts and
attaches properties of chief Subrata Roy and
other 2 directors.
18. On October 28, 2013, supreme court directed sahara
to submit title deeds of properties worth Rs 20000
crore to SEBI.
later, supreme court banned Subrata Roy and 2
directors (Ravi Shankar Dhube and Ashok Roy
Choudry) from leaving the country.
February 20, 2014, supreme court directed Subrata
Roy to appear before it on February 26
But Subrata Roy did not appear, then on 26
supreme court issued non-bail-able arrest warrant
against Subrata Roy and other 2 directors.
Subrata Roy surrendered before the Lucknow police
on February 28.
19. Subrata Roy and other 2 directors Ravi
Shankar Dhube and Ashok Roy Choudry were
sent to thihar jail.
On 2 march, 2014 they got bail by paying
10000 crore
And by 2017 almost all the money were paid
to SEBI by sahara.
20. Conclusion
Adverse effect on reputation go the country
Adverse effect on economy
Corruption and misuse of power
Lack of transparency creating speculation
Effective and strict judicial decision.