Market regulator Securities and Exchange Board of India (Sebi) has sent its order freezing the bank accounts of two Sahara Group firms and promoter Subrata Roy in the Rs 24,000-crore optionally fully convertible debenture (OFCD) issue to the Enforcement Directorate.
The communication has been made on Wednesday by Sebi. This is only one of the several issues which will now rear up in the running of the group’s day-to-day operations. The immediate casualty could be its plans to open a retail chain, Q-Shop.
Industry sources maintain that the group may face rough times at the hands of other regulators examining the manner in which Sahara made overseas acquisitions like the Grosvenor House hotel in London.
Legal experts said that if Sahara is looking for any relief, it can only get from the Supreme Court. In fact, in a late evening statement on Wednesday, the company hinted at the same when it said: “...As regards the instalments to be deposited with Sebi as per the order of the Hon’ble Supreme Court, Sahara has filed interim application before the Hon’ble Supreme Court inter alia praying that Sahara be permitted to furnish security through a credible financial institution instead and in place of the payment of the balance instalments, since Sahara has already redeemed significant number of OFCD holders and any further payments to Sebi would amount to double payment. The said interim application is pending and is likely to come up next week.”
Sahara firms rebound after early losses
MUMBAI: Shares of Sahara Housingfina Corporation and Sahara One Media & Entertainment on Thursday staged a smart recovery to end with gains after falling sharply in morning session. Sahara Housingfina, which saw a steep fall of over 19 per cent during the day, recouped the losses and ended 0.18 per cent higher at Rs 54.50 on the BSE. Sahara One Media & Entertainment rose by 4.99 per cent to settle at Rs 90.55. Intra-day, the scrip had tanked nearly 5 per cent to Rs 82.10. PTI