Sahara challenges SAT, Sebi order in SC

Two Sahara group companies, which were asked to refund about Rs 24,000 crore to investors who had invested in optionally fully convertible debentures (OFCDs), have challenged the Securities Appellate Tribunal (SAT) order in Supreme Court (SC).

In October, SAT had upheld a order by the Securities and Exchange Board of India (Sebi) asking Sahara companies to refund the entire proceeds of its OFCDs to investors (Rs 17,656 crore as on August 31, 2011) with 15% interest.

SAT had given Sahara six weeks to make these repayments. A civil writ petition filed by Sahara today says that Sebi had no jurisdiction over unlisted companies.