Sebi slaps Rs 12 cr penalty on Sahara group firms in OFCD issue matter

Asserts that by representing the OFCD as pvt placement, issuers deprived subscribers of various measures of investor protection

Market regulator, the Securities Exchange Board of India (Sebi), on Monday slapped a penalty of Rs 12 crore on Sahara India Real Estate Corporation (SIRECL), Sahara Housing Investment Corporation (SHICL), Subrata Roy Sahara and a few others for violation of the Sebi Act. 

The matter pertains to the issue of optionally fully convertible debentures (OFCDs) to raise a “sizeable amount” from the public in contravention of the provisions of the Sebi Act between 2008 and 2009. The matter had come to light when group firm Sahara Prime City had filed its offer document with Sebi in 2010. 

“Clearly, when the Noticees falsely