The Securities and Exchange Board of India (SEBI), ordered Sahara Commodity Services Corp and Sahara Housing Investment Corp. Ltd to return the money of their customers which they gained from the issuing of the 6 optionally fully convertible debentures (OFCDs) that too by violating the laws.

The authorities ordered them to pay and interest of 15% as a way of compensation counting from the time they received money from the investors. OFCDs are bonds issued to investors which provided them with the choice to fully convert the debt repayable by the company into equity shares.

The Sahara Group of Companies claimed in defense before the court that matter of issuance was completely a private matter between the investor and the company, the market guidelines had no right to interfere in the deal. The SEBI clarified that the market laws had the right to interfere because the OFCDs were marked under the definition of Bonds which were under the market laws.

SEBI also barred the two companies from raising funds from the securities market till they repay investors. Also, the regulator barred the billionaire Chairman of the Sahara Group, Subrata Roy Sahara and other directors of the companies from associating with any listed firm or a company which intends to raise money from the public till investors are repaid.