New Delhi: The Securities Appellate Tribunal (SAT) said on Tuesday that it will hear a petition filed by two Sahara Group firms on 5 September. The tribunal has asked capital market regulator Securities and Exchange Board of India (Sebi) and the ministry of corporate affairs (MCA) to file their replies by 26 August. Sahara has also been asked to file a rejoinder by 2 September.
Last month, the Supreme Court asked SAT to examine the question of whether Sahara Commodity Services Corp. Ltd (earlier known as Sahara India Real Estate Corp. Ltd) and Sahara Housing Investment Corp. Ltd could use optionally fully convertible debentures (OFCDs) to raise money from investors. The apex court has directed SAT to decide the case by 5 October.
On 23 June, Sebi directed the two Sahara companies to refund money raised from investors through the sale of OFCDs at an annual interest rate of 15%. However, this order is not in operation due to the Supreme Court keeping it in abeyance in view of the question on OFCDs not being completely settled.