SEBI cautions investors against Sahara’s ‘switch’ option
27 Oct 2012
The Securities and Exchange Board of India (SEBI) has cautioned investors in Sahara group companies - Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) - against shifting their investments to other Sahara group firms even as the Sahara management has so far failed to submit relevant documents ordered by the Supreme Court to market regulator SEBI.
Sahara group is reported to be pressuring investors in the Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) with plans to switch their investments to other Sahara group entities instead of refunding the Rs24,000 crore it collected from investors.
The SEBI warning follows investor complaints that they are being forced by officials and agents of the Sahara group to switch their investments to other schemes of the group, such as Sahara Q Shop Unique Products Range and Sahara Credit Cooperative Society Ltd.
Reports also said the group has transferred some investments in the realty firms to other group firms without the consent of the investors concerned.
SEBI has asked investors to hold on to the original documents relating to investments in SIRECL and SHICL so that they can produce the same as and when SEBI would be able to collect the amounts from Sahara and refund the investors.
The Supreme Court, in its 31 August order, had directed the two Sahara group companies to refund the amount collected by them in 2008 and 2009 along with a 15 per cent interest through a SEBI-monitored arrangement.