SEBI fines 2 Sahara companies Rs. 12 crore

Sebi has imposed a fine of Rs 12 crore on two Sahara Group companies and some of the board members of these two entities, including Subrata Roy Sahara, for violating laws that govern fund-raising by corporates. The two entities are Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL).

According to the report, when Sahara Prime City (SPCL) had filed for its IPO in 2009, Sebi found that the two entities, SIRECL and SHICL had, between 2008 and 2009, raised funds through optionally fully convertible debentures (OFCDs). The fund-raising process for each of the companies had violated Sebi’s rules for collecting funds from the public.