Presented byGroup 5

Sagar Devarkar Sahil Nerurkar Priti Pai Kakode Sharmad Pai Kane Sheldon Rebello Fakhruddin Ayam

R-11-06 R-11-23 R-11-24 R-11-25 R-11-30 R-11-37

Contents
Introduction SEBI SAT RHP OFCDs Case Nature of OFCDs Analysis Current Situation Our Stand Conclusion

Introduction
Sahara India Pariwar
Sahara India Real Estate Corporation (SIREC) Sahara Housing investment Corporation (SHIC)

SEBI
Securities and Exchange Board of India

Have to be responsive to the needs of three groups

Has been invested with the necessary powers for the

discharge of its functions efficiently

SAT
Securities Appellate Tribunal
According to this, hear and dispose of appeals against

orders passed by the SEBI or by an adjudicating officer under the Act.

To exercise jurisdiction, powers and authority conferred on

the Tribunal by or under this Act or any other law for the time being in force.

Red Herring Prospectus

Document submitted by a company as part of a public

offering of securities.

Filed with the SEC

Issued to potential investors

Optionally Fully Convertible Debentures (OFCDs)

Debt security To convert his debenture into equity share. Does not have interest in period of 6 months.

After that holders of OFCDs Apply for equity share The option has to be in the application form. No additional amount needs to be paid.

Case
Background Role of SEBI: Securities exchange board of India SAT: Securities Appellate Tribunal Justification by Sahara Judgment by supreme court

Nature of OFCDs
There are tow type of OFCDS
Public Private

Saharas OFCD is faced on hybrids

Issued to 66 luck from different its brunches. No issue of security.

Companies Act 2(19A) Hybrids

Any security which has the character of more than one type of

security, including their derivatives.

Analysis

Raising of money

On what basis did Sahara challenge SEBIs power

Issue was outside SEBI's jurisdiction
The Two companies

were Unlisted
OFCDs are not

securities
The issue made was a

private placement

SEBI in its defense

Issue involving 50 or more people to be public issues All public issues should go through SEBI framework Just disclaimers cant ward away SEBI Conduct, not statements, determines whether an issue is public SEBI has powers to take any step to protect investor

Supreme court decision

Sahara directed to refund around Rs 24,000 crore to their investors within three months with 15 per cent interest per annum.

What if Sahara fails to refund?

SEBI can attach properties and freeze bank accounts of the companies.

Is Sahara capable of Refunding?

Yes, it is
Saharas statement Sahara's track record Saharas assets

Current Situation
Sahara has filed Review petition

To uphold its image

The group's commitment to refund Prevails All our inverters are genuine

OUR STAND
The decision of the Supreme Court is Justified

Conclusion
It is a very good judgment

Act as a deterrent those unscrupulous promoters

Fight given by SEBI commendable

Thank You