The Supreme Court on Friday turned down the Sahara Group's plea to issue notice to the Centre on a dispute with the capital market regulator SEBI.
Following the apex court's orders, SEBI had, last month, ordered two Sahara group firms to refund — with 15 per cent interest — the money raised by them from the market through Optionally Fully Convertible Debentures (OFCD) saying that did not conform to the regulatory norms.
The two firms are Sahara Housing Investment Corporation and Sahara India Real Estate Corporation. OFCD is a debt instrument that can be converted into equity at the holder's option according to the terms of the offer.
Sahara group's plea was against this SEBI order. The Apex Court, during Friday's proceedings, asked for clarifications from SEBI regarding OFCDs as it wanted investors to be protected.
Sahara group contended that since it is an unlisted company, it was the Union Corporate Affairs Ministry that has jurisdiction over it and not SEBI, which is the regulator for listed firms. Sahara group, therefore, wanted the Apex Court to issue notice to the Central Government to clarify its stance on the matter. But the court said it did not want the Centre to come in at this stage.
Sahara group also said SEBI passed its order despite the matter pending in the court. In its order, SEBI had also restrained the Sahara group firms from raising funds from the market till they make payments to the regulator's satisfaction.