HC vacates stay on SEBI directive to Sahara group

The Allahabad High Court today vacated a stay on a Securities and Exchange Board of India (SEBI) directive to Sahara group, clearing the way for the group's sharing full details of investors participating in its fund raising exercise with the market regulator.

SEBI had asked the Sahara group to share details of investors participating in an issue of optionally fully convertible debentures (OFCDs) by two group entities - Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited.

Sahara had opposed the SEBI directive and filed a petition in the Allahabad High Court in December last year and got a stay on the directive. SEBI, in turn, moved the Supreme Court, which allowed the regulator "to call for any information which it deems fit, including the names of the investors who have invested in OFCDs."

On April 5 this year, SEBI filed an application before the Allahabad High Court for vacation of the interim order and dismissal of the writ petition on the ground that "the said interim order is not complied with till date and the requisite information as asked for by the Sebi has not been provided".

"We do not find any ground to continue with the interim order, which is hereby vacated for the own conduct of petitioners (Sahara India Real Estate Corporation Limited and others) and for which they have to thank their own stars", the Lucknow bench of Allahabad High Court said.

The order is posted on the website of SEBI.