Sahara – SEBI 

Sahara India, a major business conglomerate of India, is fighting a legal battle with Indian market regulator, the Securities and Exchange Board of India (SEBI), since 2010. Sahara – SEBI case involved jurisdictional dispute of whether SEBI has jurisdiction or not in matters of hybrid financial instrument – known as the ‘Optionally Fully Convertible Debentures’ or OFCDs issued by two unlisted companies of Sahara Group – Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL), in 2008-09. The two unlisted companies raised Rs. 24 billion (Rs.24,029.73 Crores) by issuing OFCDs to 3 crore investors after taking requisite permission from its regulator. OFCD, historically did not come under the jurisdiction of SEBI, and instead were regulated by Registrar of Companies (RoC) under Ministry of Corporate Affairs (MCA). Pertinent to note here is that the figure of amount collected Rs.24,029.73 Crores & the number of investors 3 Crore was provided by Sahara only to the Court and SEBI and is not resulted of any investigation conducted by Sebi or any agency.