Sebi foxed by ghost investors; seeks fgn help in Sahara case

As Sebi sifts through "hopelessly mixed up" documents submitted by Sahara, chances remain very

RELATED ARTICLES

low of finding genuine investors and the market regulator suspects it to have provided details of mostly "ghost or fictitious" investors.

Making things worse, there has been a considerable delay in response from central agencies and state governments from whom Sebi has been seeking assistance for attaching Sahara group properties for almost a year, sources said.

Notwithstanding these hiccups in such a high-profile case in which Sahara chief Subrata Roy has been taken into police custody for being produced before the Supreme Court on March 4, Sebi is seeking help from its peers in foreign countries such as Mauritius, the UK and the US.

It is also seeking help of some other jurisdictions, where Sahara is said to have presence through business ventures or shell companies.

Besides help in administrative matters, the overseas regulators may also be tapped for sharing intelligence on the ventures set up by Sahara in various jurisdictions.

As majority of investor accounts, from about 3 crore listed out by Sahara, not turning out to be genuine, there is a suspicion about possible money laundering activities, a senior official said, adding that other regulatory agencies would need to play a more active role in such a scenario.

Even among those who so far appear to be genuine investors and whose numbers could reach a few lakhs at most, a majority are in the "multiple investor" category. Refunds have been made as yet only for "individual genuine investor" accounts.

While Sahara has accused Sebi of going slow on repayment process despite Rs 5,120 crore having been deposited with it, senior officials said that the refund task is too complex and the group has not been very forthcoming when asked to cooperate in investor verification.

The group claims that Sebi has not sought its help in verifying investors.

While genuine investors not finding multiple mentions and those not listed against multiple accounts are being repaid their investments, Sebi will soon ask the Supreme Court about the "genuine multiple investors" or those having multiple deposits.

These investors would begin getting their refunds after the Supreme Court go-ahead in this regard.

While Sebi has not disclosed any official figure for the refunds made so far, Sahara group claims that the total refund so far is just about Rs 1 crore.

Sebi has also set up a special team of officers to deal with refunds. An Officer on Special Duty and other dedicated officers may deal with the objections and claims relating to the Sahara properties to be sold and for conducting the sale of the property to garner funds for refunding the investors' money.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • RBI and government intervention is vital if all Indians are to have homes by 2022

    There is a strong case for interest subvention for India’s real estate sector.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

Public perception on climate change

Climate change is already happening; however, surveys conducted in 2008 ...

Parvez Imam

The absoluteness in representations

When a representation replaces the original object or subject, a ...

Dharmendra Khandal

Religion and conservation must go hand in hand

In 1986, former president of WWF International, HRH Prince Philip, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture