Sebi starts refunding Sahara investors’ money

Sebi starts refunding Sahara investors’ moneyThe Securities & Exchange Board of India (SEBI) has finally started refunding money to investors of two Sahara group companies, viz. Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL).

Those who had invested their money in the two companies through their optionally fully convertible debentures (OFCDs) can claim refunds from the regulator by filling a four-page application form.

The Supreme Court of India had ruled that the two companies' OFCDs were not in accordance with the capital laws of the country, and ordered the Sahara to deposit investors' money (Rs 25,000 crore) with market regulator Sebi.

The apex court had also entrusted Sebi with the responsibility of refunding the money to genuine investors of the two Sahara group companies.

The two Sahara firms, however, have so far deposited only Rs 5,100 crore with Sebi, and claimed that the balance amount had already been refunded to the investors. The market regulator insisted that the firms should deposit the full amount determined by the Supreme Court, but the court directed the regulator to start the process of refunding with the existing amount.

Sebi said in a statement, "The order... permitted the refund of the money so far deposited with Sebi (by Sahara companies) to the genuine investors with interest, after verifying the genuineness of the documents."

A bank account is a must to get the refund, as the money will be deposited directly into the investors' bank accounts.