Markets regulator Sebi today cancelled the certificate of registration of Sahara India Financial Corporation Ltd as a sub-broker citing its failure to fulfill the 'fit and proper' criteria
NEW DELHI :
Markets regulator Sebi on Wednesday cancelled the certificate of registration of Sahara India Financial Corporation Ltd as a sub-broker citing its failure to fulfill the "fit and proper" criteria.
The regulator had appointed a designated authority in 2018 to enquire whether Sahara India Financial violated provisions of Intermediaries Regulations.
According to the designated authority's report, considering the antecedents of Subrata Roy Sahara and the various judicial pronouncements against him and other group companies of Sahara, it is determined that Sahara India Financial (noticee) is not a "fit and proper person" to continue as a sub-broker in the securities market.
Subrata Roy is a substantial shareholder in the company, Sebi noted in an order, adding that it is the duty of the regulator to constantly monitor the "fit and proper person" criteria of intermediaries to maintain the integrity of the securities market.
"As a watchdog of the securities market and protector of investor's interest, Sebi cannot take it lightly in view of the actions/ proceedings carried out against a substantial shareholder/ promoter of the noticee i.e. Subrata Roy Sahara and the companies with whom he is associated," the order said.
In the 12-page order passed on Wednesday, Sebi Whole Time Member G Mahalingam said that he was in agreement with the findings of the designated authority that the noticee is not a "fit and proper person" in terms of Intermediaries Regulations.
"Having regard to the facts and circumstances of the instant proceedings, I accept the recommendation of the designated authority that the certificate of registration granted to the noticee as a sub–broker, be cancelled," he said in the order.
The order also mentioned actions taken against certain Sahara entities as well as about the case involving Sebi and two Sahara group firms -- Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) -- regarding funds raised from investors.
This story has been published from a wire agency feed without modifications to the text.