The Capital Market Regulator Securities and Exchange Board of India (SEBI) has cancelled the certificate of registration of Sahara Mutual Fund after finding that the fund house and its sponsors are not ‘fit and proper’ entities to carry out the mutual fund business. SEBI has barred the fund house from accepting any fresh subscription from investors and has directed it to make efforts to transfer the business to a new fund house in five months and return the certificate of registration to SEBI within six months.
Additional Facts
- SEBI is the regulator for the securities market in India.
- It was established in the year 1988 and given statutory powers on 12 April 1992 through the SEBI Act, 1992.
- SEBI has enjoyed success as a regulator by pushing systematic reforms aggressively and successively.
- Sahara India Pariwar was founded by Subrata Roy, who is currently serving a prison sentence for an “investment scandal”.
- In 2004, the group was termed by the Time magazine as ‘the second largest employer in India’ after the Indian Railways.
- On 26 February 2014, the Supreme Court of India ordered the arrest of Subrata Roy for failing to appear in connection with the Rs.24,000-crore deposits his company has not refunded to its investors.
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