Supreme Court Refused to Stay SEBI’s Ban on Sahara Firms

The Supreme Court on 4 January 2011 day refused to stay two Sahara Group firms' ongoing fund raising exercise as sought by SEBI. The apex court however permitted the market regulator to seek information about investors' details from the companies. The Supreme Court bench also directed SEBI to file its reply before the Allahabad High court by 7 January 2011. Supreme Court also asked the Registrar of Companies (ROC) to file its response before the Allahabad High Court by 7 January 2011.

Two Sahara Group companies- Sahara India Real Estate Corporation and Sahara Housing Investment Corporation intend to raise Rs 20000 crore each from the market through OFCDs (Optionally Fully Convertible Debentures ). SEBI had barred Sahara Group firms from raising funds and had sought details of their investors. Following SEBI’s ban Sahara had challenged SEBI before the Allahabad High Court. Sahara had argued that only the Registrar of Companies (RoC) and not SEBI may pass such an order. The Allahabad High Court had in an interim order stayed the ban.

As per the World Gold Council, India which is the world’s largest gold consumer imported a record 624 tonnes of the yellow metal in 2010 as against 559 tonnes in 2009. Silver imports are also estimated to have increased by 25 per cent to 1200 tonnes in 2010. Banks contribute more than 80 per cent of the annual imported bullion traded at the wholesale and retail markets.