Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Sebi makes fresh bid to find Sahara investors
BackBack

Sebi makes fresh bid to find Sahara investors

The capital markets regulator has asked bondholders to submit their claims by next month along with necessary proof of their investments

The latest exercise follows a similar attempt made by Sebi in August, wherein the eligible bondholders were asked to submit their refund claims to the regulator by 30 September. Photo: HTPremium
The latest exercise follows a similar attempt made by Sebi in August, wherein the eligible bondholders were asked to submit their refund claims to the regulator by 30 September. Photo: HT

In a fresh effort to locate Sahara investors eligible for refunds, capital markets regulator Securities and Exchange Board of India (Sebi) has asked bondholders to submit their claims by next month along with necessary proof of their investments.

The latest exercise follows a similar attempt made by Sebi in August, wherein the eligible bondholders were asked to submit their refund claims to the regulator by 30 September.

Sebi said it received 4,900 refund claims during that exercise from the bondholders of two Sahara companies—Sahara India Real Estate Corp. Ltd (SIRECL) and Sahara Housing Investment Corp. Ltd (SHICL), which had raised over 24,000 crore from about 30 million investors.

“In the interest of those bondholders of Sahara who could not submit their refund claims before the last date, this advertisement is being issued to enable those bondholders to submit their refund claims," Sebi said in its fresh public notice in this regard.

The Supreme Court had asked Sebi to facilitate refund to the bondholders of the two companies in connection with a long-running dispute involving raising of funds to the tune of over 24,000 crore from investors across the country. While Sahara maintains it has already repaid more than 93% of the outstanding dues directly to the concerned bondholders and the remaining amount was just about 2,500 crore, it deposited 5,120 crore to Sebi in December 2012 towards the investor refunds as per Supreme Court orders.

A further amount of 3,117 crore was deposited with Sebi by the group in June this year. It is now in the process of selling certain domestic properties to garner funds and deposit the same to Sebi.

At least two such property sales have already taken place and a few others are in the offing. In its latest annual report for the year ended 31 March, Sebi had disclosed having received 3,612 refund applications involving 13,948 deposit accounts till that time in the Sahara matter. Of those applications, Sebi made refunds in case of 445 applications involving an equal number of deposit accounts for an aggregate amount of about 1.25 crore including interest of about 43.83 lakh.

The other applications had deficiencies or fell under either “mismatch" or ‘multiple investment’ category. The new notice, wherein Sebi has asked the bondholders to submit their refund applications by 31 January 2015, applies to investors holding real estate, abode and nirmaan bonds of SIRECL, as also the multiple, income and housing bonds issued by SHICL, the regulator said.

The investors would need to submit their applications in a prescribed format, along with original bond certificates or passbooks, self-attested copies of identity and address proof and a self-attested copy of the first page of a bank account passbook or a cancelled cheque leaf. The refund amount would be credited to the bank account of the investor, Sebi said.

Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s dispute with Sebi. Mint is contesting the case.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 17 Dec 2014, 06:30 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie