NEW DELHI: Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), on Thursday said the capital market regulator will continue to probe the Sahara Group matter even after the demise of its founder-promoter Subrata Roy.
“The case is against the group or entities and not against one individual (Roy). The passing away of one person doesn’t change anything. The investor refund process will continue,” said Buch while speaking at the sidelines of an industry body FICCI event.
Roy, 75, passed away in Mumbai on Tuesday night after battling a prolonged illness. His death has put the focus on undistributed funds to the tune of Rs 25,000 crore that is currently held by the SEBI. These funds are to be distributed to about 3 crore investors.
SEBI has received 19,650 applications involving 53,687 accounts from investors who were seeking a refund at the end of March 2023. Refunds have been made with respect to 17,526 applications involving 48,326 accounts for an aggregate amount of just Rs 138.07 crore, including the interest amount of Rs 67.98 crore. The remaining applications were closed either due to their records not being traceable.
When asked as to why only a small amount of refunds have been made so far, Buch said their actions are dependent on the directions of the SC-appointed committee. “As per their recommendations, multiple rounds of advertisements have happened. Disbursements have happened to whoever is coming ahead with proof of investment,” she said.
The tussle between SEBI and Sahara dates back to before the 2010 era when SEBI increased its scrutiny on Sahara’s group firms and accused them of circumventing existing capital market regulations with Ponzi schemes.
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After a detailed inspection, Sebi in 2011 ordered Sahara India Real Estate Corporation Ltd (SIREL) and Sahara Housing Investment Corporation Ltd (SHICL) to refund the money raised from 3 crore investors through certain bonds known as Optionally Fully Convertible Bonds (OFCDs).
Buch, who addressed the 20th Annual Capital Markets Conference (CAPAM2023) organised by FICCI, also said the SEBI would review new proposed delisting regulations and trading plan reforms at its board meeting soon.