The Securities and Exchange Board of India (Sebi) extended its earlier deadline of April 21 for Sahara Mutual Fund (MF) to wind up all its schemes, allowing it to continue with its tax saving Sahara Tax Gain Fund till July 27.
Last year, it had instructed Sahara MF to strictly comply with the timelines specified in its order dated July 28, 2015. This became effective from October 23, 2017. Sahara MF had asked Sebi to extend the timeline, citing the three years of lock-in period at Sahara Tax Gain Fund. The fund house said there were 748 investors and redemption was not possible before expiry of three years from the date of investment. Further, that they would not be able to complete the process of transferring the fund activity to a new sponsor.
Considering these implementation issues, Sebi has modified its earlier direction, agreeing that this might not be in the interest of investors. So, it has extended the last date to July 27 but the fund is not to accept any new investor. It is also to redeem each investment in the scheme as and when the lock-in period expires.
In 2015, Sebi had directed cancellation of Sahara MF's certificate of registration on expiry of a six-month period from the date of order.
Subsequently, Sahara MF and Sahara Asset Management Company had appealed to the Securities Appellate Tribunal.
The latter had disposed off the case and granted a period of six weeks to approach the Supreme Court. Which also upheld the Sebi order and dismissed the petition.
The Sahara group has been engaged in a long regulatory and legal battle with Sebi ever since the regulator ordered refund of a massive Rs 240 billion by two Sahara entities.