Monday, April 18, 2011

SEBI Moves Apex Court on Sahara

The Securities and Exchange Board of India (Sebi) has filed a caveat in the Supreme Court claiming that any petition on its ongoing case against two Sahara group entities cannot be decided without its knowledge.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation are under the capital market regulator's scanner for raising money from the public through optionally fully convertible debentures.

A Sebi counsel said the caveat, filed on Saturday, aims to prevent any ex parte decisions (those taken in the absence of one of the parties to a case) on the matter.

Sahara said on Friday it had filed a special leave petition in the Supreme Court seeking relief against the Allahabad high court's April 7 order vacating a stay on an earlier Sebi direction, which had restrained the two firms from raising money from the public.

"We are law-abiding and we are not accepting deposit," added the Sahara statement, which was issued after Sebi's public notice on Friday informing investors about the April 7 ruling.

This is the second time in the last three months that the matter has come up before the apex court.

In January, a Supreme Court bench led by Chief Justice of India S H Kapadia had given permission to Sebi to seek and obtain all information regarding the money-raising activities of the two Sahara group firms.

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