MUMBAI: The Securities and Exchange Board of India (SEBI) has ordered the recovery of INR 6.42 crore (approximately $871,000) from five entities – Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation), Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey, and Vandana Bharrgava – for their failure to follow proper procedures in the issuance of Optionally Fully Convertible Debentures (OFCDs) during 2008-09.
The regulator has also directed banks to attach all accounts, including lockers, belonging to these individuals and prohibited any debits from their accounts, while allowing credits.
The case relates to the issuance of OFCDs by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, which allegedly solicited subscriptions from the general public without adequately informing them of the risks involved and without following necessary procedures intended to protect the interests of investors.
The issuance was in violation of SEBI’s ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices). In June, SEBI levied a fine totaling INR 6 crore on the five entities.
