Market regulator SEBI on Friday warned investors that two Sahara Group companies have been raising funds without its approval and said it will not be able to redress any complaint in this regard.
The regulator, in a public notice, said investors of Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) should take investment decision at their own risk.
“SEBI will not be able to provide redress to any investor on any complaint in connection with these OFCDs (Optionally Fully Convertible Debentures)”, the notice said, pointing out that the two companies have not sought regulatory approval from SEBI for raising funds.
The two Sahara group companies have been raising funds through OFCDs, which SEBI said “were not issued in compliance with the applicable SEBI regulations...”
Furthermore, the notice added, “the Red Herring Prospectus submitted to RoC (Registrar of Companies) has not been vetted by SEBI with reference to compliance to SEBI regulations.” The public notice, it added, is being “issued to safeguard the interest of investors.”
The regulator further said that it had been receiving complaints alleging that SIRECL and SHICL have been issuing OFCDs to the public for many months with varying face value and maturity period extending up to 15 years.