Tezzbuzz Desk – The Supreme Court on Thursday agreed to hear the petition of market regulator SEBI in the Sahara India Commercial Corporation Limited (SICCL) case. SEBI has challenged the decision of the Securities Appellate Tribunal (SAT) in which relief was given to four managers and the company secretary of the company.
A bench headed by the Chief Justice listed the matter for hearing in July and directed to club it with the pending petitions related to the same subject.
what is the whole matter
The case pertains to ‘Optionally Fully Convertible Debentures (OFCD)’ issued between 1998 and 2008, under which funds were raised from a large number of investors. It is alleged that Sahara India Commercial Corporation Limited collected approximately Rs 14,106 crore from about 1.98 crore investors through this medium.
SAT, in its March 9 order, had held that this issue of OFCD falls in the category of public issue and hence it comes under the regulatory purview of SEBI. Due to this the appeal of the company and its directors was rejected.
Controversy over relief to four officers
However, the tribunal had relieved the four managers and the company secretary from personal responsibility, saying that they could not be held responsible for the financial decisions of the company merely by virtue of being employees.
Challenging this relief, SEBI has now moved the Supreme Court. SEBI says that responsibility should be fixed in such a big investment collection case.
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