SEBI cancels Sahara's mutual fund licence
Securities and Exchange Board of India (SEBI) has cancelled licence of Sahara asset Management Company (AMC). The license will stand cancelled after sixty days from the date of the order.
The apex market regulator took this decision as Sahara AMC is not fit to carry out the business of mutual fund.
It has directed the company
- Not to take any new subscription from the investors including existing investors in systematic investment plans.
- Not levy any penalties on the investors for not depositing the installments.
Background
Presently, Sahara Group is in financial crisis due to its involvement in a legal tussle with the SEBI over optionally fully convertible debentures. SEBI has directly ruled that these debentures are illegal and has directed Sahara group to refund the money collected through fully convertible debentures to investors along with interest. The matter is currently before the Supreme Court.
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Month: Current Affairs - July, 2015