HC stays Sebi ban on Sahara
TNN, Dec 14, 2010, 06.55am IST
LUCKNOW: A division of bench of the Allahabad High Court on Monday stayed the Securities and Exchange Board of India (Sebi) order passed on November 24, by which the market regulator had restricted the Sahara India Group from soliciting funds from the public.
Fixing January 12 as the next date of hearing, the bench of Justice D P Singh and Justice V K Dixit asked the Sahara India Group to furnish all necessary information to the Registrar of Companies (RoC), Kanpur, and directed the Central government and RoC to investigate into the interest of shareholders and submit a status report by then. According to the order, Sahara could now continue to take deposits as per the consent granted by the RoC, approving the resolution of company's board of directors.
The bench had earlier, on December 1, reserved its order, saying that the central government and Sebi would not coerce the Sahara Group. On Monday, while passing the order, the court said it would adjudicate whether Sebi had got a right to interfere with the affairs of an unlisted company. The court further said that the question whether Sebi could force a company to get listed, also required consideration.
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