SC: Sebi can seek fund-raising details from Sahara firms SC: Sebi can seek fund-raising details from Sahara firms Chartered Accountant CA ICAI Chartered Accountants CA ICAI CAinINDIA ICAI Announcements Accounting Standards CA News ICAI Students ICAI Members Case Laws CPT IPCC Final ICAI Course CA Course ICAI Forum CA Question Papers ICAI Study Material

« Top Headlines »

Open DEMAT Account in 24 hrs
Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.
Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief
ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know
Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose
CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27
CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details
Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window
Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do
Tax audit deadline September 30: Common mistakes taxpayers should avoid
Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck


« ICAI Organizes an International Conference on Accountancy...	ICAI opposes the tendering process of selecting accountants... »
SC: Sebi can seek fund-raising details from Sahara firms

January, 04th 2011
The Supreme Court today said Sebi was entitled to seek all necessary information from two Sahara group firms on how resources were being raised but refused to stay the companies' ongoing fund-mopping exercise. The apex court was hearing market regulator's petition against an Allahabad High Court order staying Sebi's ban on two Sahara group firms, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation from raising funds from the public through OFCDs (Optionally Fully Convertible Debentures). A bench headed by Chief Justice SH Kapadia said that SEBI can call for information from the two Sahara group firms regarding their investors. "We make it clear that Securities and Exchange Board of India (SEBI) is entitled to call for any information which it deem to fit including names of the investors who have invested in OFCDs," the bench said. The apex court further said,"We express no opinion in this case. We direct High Court to dispose off the case expeditiously." However, the bench declined the plea of SEBI's council to stay Sahara group companies from raising money from the open market through OFCD. "The investors are very clever now a days. If they invest then that should be at their own risk," the bench said asking SEBI to bring out an advertisement regarding the ongoing case. The Supreme Court also asked the registrar of companies to appear before the Allahabad high court and file its reply in this matter. Yesterday, Sebi had moved the Supreme Court against a High Court order staying the market regulator's ban on a Sahara group firm to raise funds from the public. Earlier on December 13, the Allahabad High Court had stayed an order of SEBI restraining Sahara India Real Estate Corporation from accessing public funds. In its petition, the Sahara group firm had challenged the order of SEBI restraining two entities and promoters, including Chairman Subrata Roy, from accessing market for non-disclosure of information. Sebi had also said that there was a need for lifting the veil on corporate fund raising.