<p>In a public notice issued on Friday, Sebi said investors of Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) should take investment decision at their own risk.<br /><br />“Sebi will not be able to provide redress to any investor on any complaint in connection with these OFCDs (Optionally Fully Convertible Debentures),” the notice said, pointing out that the two companies have not sought regulatory approval from Sebi for raising funds. <br /><br />The two companies have been raising funds through OFCDs, which Sebi said “were not issued in compliance with the applicable Sebi regulations...”<br /><br />Further, the notice added: “the Red Herring Prospectus submitted to RoC (Registrar of Companies) has not been vetted by Sebi with reference to compliance to Sebi regulations.” The RHP (red-herring prospectus) filed with the Registrar of Companies (RoC) that the cost of projects of both the companies is Rs 20,000 crore each, while the annual accounts filed with RoC reveal tgat SIRECL has already raised Rs 4,843.37 crore from the investors as on June 30, 2009.<br /><br />Also, the public notice is being “issued to safeguard the interest of investors”. They (investors) are advised to make their decisions in OFCDs of these companies taking into account the facts and circumstances brought out above.<br /><br />Further, the regulator said that it had been receiving complaints alleging that SIRECL and SHICL have been issuing OFCDs to the public for many months with varying face value and maturity period extending up to 15 years.</p>
<p>In a public notice issued on Friday, Sebi said investors of Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) should take investment decision at their own risk.<br /><br />“Sebi will not be able to provide redress to any investor on any complaint in connection with these OFCDs (Optionally Fully Convertible Debentures),” the notice said, pointing out that the two companies have not sought regulatory approval from Sebi for raising funds. <br /><br />The two companies have been raising funds through OFCDs, which Sebi said “were not issued in compliance with the applicable Sebi regulations...”<br /><br />Further, the notice added: “the Red Herring Prospectus submitted to RoC (Registrar of Companies) has not been vetted by Sebi with reference to compliance to Sebi regulations.” The RHP (red-herring prospectus) filed with the Registrar of Companies (RoC) that the cost of projects of both the companies is Rs 20,000 crore each, while the annual accounts filed with RoC reveal tgat SIRECL has already raised Rs 4,843.37 crore from the investors as on June 30, 2009.<br /><br />Also, the public notice is being “issued to safeguard the interest of investors”. They (investors) are advised to make their decisions in OFCDs of these companies taking into account the facts and circumstances brought out above.<br /><br />Further, the regulator said that it had been receiving complaints alleging that SIRECL and SHICL have been issuing OFCDs to the public for many months with varying face value and maturity period extending up to 15 years.</p>
