Hon’ble Supreme Court refuses to ratify SEBI’s order of 23rd June, 2011

July 15, 2011 - PRLog -- New Delhi, July 15, 2011:
The Sahara - SEBI matter came up before the Hon’ble Supreme Court today. It was also directed that the SEBI’s order dated June 23, 2011 shall not be given effect. The court stated that it has understood the concept of OFCD and was of the view that the matter involves important questions of law, which need to be adjudicated upon. The Hon’ble Supreme Court also indicated that though the order of SEBI explains the concept of OFCD, it goes beyond the mandate. As two avenues were available for such adjudication one being before the High Court, and the other before SAT, the court ordered that Sahara should file a petition before the SAT.
The court also ordered that as the issue involved important questions of law under the Companies Act, 1956 and the MCA, which had authorized the issuance of OFCDs by Sahara should be made a necessary party to the petition.
Sahara has been directed to file the petition within 3 weeks and the order also directs that SAT shall not be influenced by any prior orders.

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Sahara India Pariwar is a major business conglomerate in India with operations in financial services, housing finance, mutual funds, life insurance, real estate, print and television media, sports, healthcare, hospitality, consumer products etc.