Don't invest in Sahara Q-shop, says Sebi

Marketed as a retail venture, Q Shop has been endorsed by top cricketers like Dhoni and Tendulkar to promote Q-shop as a fight against adulteration

In a strong and well meaning move, the securities and exchange board of India (Sebi) today told investors in optionally fully convertible debntures (OFCDs) of Sahara group not to yield to pressure by Sahara agents and shift investments to Sahara Q shop.

Sahara Q Shop is an investment scheme from the Sahara India Parivar that is being marketed as a retail venture. Star cricketeres including Mahendra Singh Dhoni and Sachin Tendulkar have been part of a high profile campaign to promote Q-shop as a fight against adulteration(milwat se jung) in food and other consumer products.

“Don’t be forced, Don’t be misguided, ” Sebi screamed advising bondholders of Sahara India real estate corporation (SIRECL) and Sahara housing Invest Corporation (SHICL) “to hold on to the original documents relating to their investments in bonds and to produce the same to sebi when called for.”

The regulator also asked investors “not to yiled to any pressure  from any person, including Sahara or their agents, for converting or switching over their existing investments in the bonds or any of their other schemes like Qshop etc.”
It added, “please bring the details of any such instances to the notice of Sebi.”

The supreme court on August 31, directed the above sahara firms to furnish details of over 30 million investors who bought OFCDs worth some 24,029 crore. It asked Sebi to arrange refund for all these investors along with an interest of 15 per cent.

Sebi said, “The Saharas have not submitted relevant documents to Sebi as per the order of the Supreme Court. Sebi has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investments  to other schemes in Sahara group companies like Sahara Q shop unique products range ltd, Sahara credit cooperative society ltd etc.”

Some investors have even  complained that switchover has already  been done without their consent. In response to media queries earlier this week, a Sahara spokesperson had put the blame on some agents who are switching over to earn commissions. these agents have been asked to stop this practice, the spokesperson said.