Sebi sent a notice to Sahara Group firm on Wednesday. Chief of Sahara, Subrata Roy, and others are required to pay Rs 6.42 crore in a case pertaining to violating regulatory rules. Sebi also ordered them to attach assets and bank accounts, if they fail to make the payment.
The notice was issued, following the failure to pay the fine imposed on the entities by the Sebi.
The regulator imposed a fine of Rs 6 crore in June on five entities, Sahara India Real Estate Corporation (Sahara Commodity Service Corporation), Subrata Roy, Ashok Roy Choudhary, Vandana Bhargava, and Ravi Shankar Dubey for breaching the rules in the issuance of optionally fully convertible debentures (OFCDs).
The case relates to the issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation during 2008-2009.
According to Sebi, they raised money through the public issues of securities by issuing OFCDs without any policy to protect the interest of the investors, in respect of public issues, ordered under the regulations.
The subscription regarding the OFCDs was requested by the two companies from the general public all over the country, without informing them about the risks thoroughly, including in the instruments.
The issuance was done allegedly in contravention of the provisions of the Sebi’s ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).
Sebi asked the five entities to pay Rs 6.42 crore within 15 days in its fresh notice, which includes interest and recovery costs.
In the failure of paying dues, the amount will be recovered by the market regulator, attaching and selling properties of the entities along with an attachment of their bank accounts.
Also, the regulator will act to arrest them and imprison them to recover the amount.
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