MUMBAI: The Sahara Group on Friday went into a defensive mode alleging that the market regulator had raised much hue and cry about the hybrid securities issues by two of its unlisted companies.
"The matter is sub judice and it is not appropriate for SEBI to go public by putting its order dated June 23, 2011 on its website and issuing a press note, in spite of the Supreme Court order that the SEBI order will not be given effect to," a statement issued by Sahara Group on Friday said.
On Thursday, the Securities and Exchange Board of India directed two Sahara Group companies promoted by Subrata Roy to refund money raised from investors in 2008 through hybrid securities for allegedly violating securities laws.
The regulatory directive comes after SEBI discovered the two companies - Sahara Commodity Services Corporation and Sahara Housing Investment Corporation - were raising significant amounts of money from investors through optionally fully convertible debentures, or OFCDs. These instruments are a combination of debt and equity and don't conform to prudent disclosure and other investor protection norms which govern public offerings.
However, the regulator clearly stated that its order will take effect subject to a final ruling by the Supreme Court since the court directed SEBI to pass an order after the Sahara Group contested an earlier ruling by the market regulator.
"It was expected of SEBI to simply place the order before the Supreme Court and maintain the sanctity of the order passed by the Supreme court," the statement from Sahara said. The group went on to accuse some SEBI officials, without naming them in its statement.
source-economic times
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