The Securities and Exchange Board of India (SEBI) on 28 July 2015 cancelled the Certificate of Registration of Sahara Mutual Fund. Its licence would stand cancelled after 60 days from the date of the order.
The market regulator in its order said that the company is not fit and proper entity to carry out the business of mutual fund.
It also directed Sahara Mutual Fund or Sahara Asset Management Company Private Limited (Sahara AMC) not to take any new subscription from the investors including existing investors in Systematic Investment Plans (SIPs) or Systematic Transfer Plans (STP) and also not to levy any penalties on the investors for not depositing the installments.
The regulator also asked the fund house to transfer activities of Sahara India Financial Corporation Limited (Sahara Sponsor) and Sahara Asset Management Company Private Limited (Sahara AMC) to a new sponsor and a SEBI approved asset Management Company at the earliest.
It also directed that the Board of Trustees of the Sahara Mutual Fund shall oversee and ensure protection of the unit holders' interests during the above period. On transfer of the activities, the Board of Trustees shall be re-constituted in accordance with the SEBI (Mutual Fund) Regulations, 1996.
Besides, the regulator also said that in the event of failure of Sahara Mutual Fund to complete the process of transition, within a period of five months from the date of this order, then Sahara Mutual Fund should compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of thirty (30) days thereafter and wind up the operations of the Mutual Fund.
On expiry of the six months from the date of this order, Sahara Mutual Fund shall return the certificate of registration to SEBI.
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What: Cancelled by SEBI
When: 28 July 2015