Sebi advises investors not to yield to pressure from Saharas

New Delhi: Sebi on Saturday advised investors against yielding to any pressure from "Saharas or their agents" for switching over their investments in two Sahara companies -- SIRECL and SHICL -- to other group companies.

In August, the Supreme Court had directed SIRECL and SHICL to refund investors' money worth Rs 24,000 crore within three months with 15 percent interest per annum for violating norms in raising funds from the public.

Noting that the Saharas have not submitted the relevant documents to it, Sebi in a public notice today said the regulator has been receiving complaints from investors of being forced by Saharas to switch to schemes in its other group companies.

In the notice titled 'Don't be forced!!! Dont' be misguided', Sebi has asked investors "not to yield to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the bonds to any of their schemes..."

The apex court had said that if Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) fail to refund the amount, then Sebi can attach properties and freeze bank accounts of these companies.

"The Saharas have not submitted the relevant documents to Sebi, as per the order of the honourable Supreme Court. Sebi has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investments to other schemes in Sahara Group Companies like Q Shop Unique Products Range Ltd, Sahara Credit Cooperative Society Ltd, etc.

"Some investors have also complained that their investments have been switched over to said schemes of Sahara Group Companies without their consent," the notice said.

The Supreme Court in August had said that SIRECL and SHICL should refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with an interest rate of 15 percent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment.

PTI