Professional Documents
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Disclaimer
This
May 2011
Supreme
Court
Oct., 2011
SAT upheld
order
June, 2011 SEBI final
order
Aug. 2012
Supreme
Court order
they did not intend to get their securities listed on any recognized stock
exchange.
SIRECL
Date of commencement of
issue
Total amount collected till
April 13, 2011
Total
25.4.2008
20.11.2009
Rs.6,380.50 Crs
Rs.25,781.37 Crs
(Number of Investors 3.07 Crs..)
Rs. 1,744.34 Crs
Rs.7.30 Crs
Total
Balance on August 31, 2011
Rs.1,751.64
Rs.6,373.20 Crs
Total
Rs.24,029.73 Crs.
(Number of Investors 2.96 Crs.)
Questions of Law
Whether, the issue was a private placement or public issue under section
67(3) of the Companies Act, 1956
Whether, Sahara have violated the Companies Act, DIP Guidelines and
ICDR 2009
OFCDs
Listing is mandatory
Supreme Court Opinion: SEBI has the powers to administer the provisions
referred to in the opening part of Section 55A which relates to issue and
transfer of securities and non-payment of dividend by public companies like
Saharas, which have issued securities to fifty persons or more, though not listed
on a recognized stock exchange, whether they intended to list their securities
or not.
Sahara have violated the DIP Guidelines and ICDR 2009 and by not
complying with the disclosure requirements and investor protection
measures for public, and also violated Section 56 of the Companies Act
which may attract penal provisions.
Even though Supreme Court hope that all the subscribers are genuine, and
so also, the subscription amount, it would be necessary to modify the
operative part of the order issued by the SEBI which came to be endorsed
by the SAT, so that the purpose of law is not only satisfied but is also
enforced.
Saharas (SIRECL & SHICL) would refund the amounts collected with interest
@ 15% per annum to SEBI
Saharas are also directed to furnish the details with supporting documents
to establish whether they had refunded any amount to the persons who
had subscribed
SEBI (WTM) if, after the verification of the details furnished, is unable to find
out the whereabouts of all or any of the subscribers, then the amount
collected from such subscribers will be appropriated to the Government of
India.
Hon'ble Supreme Court also appoints Mr. Justice B.N. Agrawal, a retired
Judge of this Court to oversee whether directions issued by this Court are
properly and effectively complied with by the SEBI (WTM) from the date of
this order.