Zee Media Bureau
New Delhi: The Securities and Exchange Board of India (Sebi) on Tuesday cancelled registration of Sahara Mutual Fund and ordered transfer of business to a new fund house.
Earlier, the regulator had cancelled Sahara Asset Management Company's (AMC) licence on February 28, saying it's not a "fit and proper person" to act as a portfolio manager in the Indian securities market.
The Supreme Court had asked the company to return the money to its investors apart from furnishing a bond of Rs 10,000 crore to release Subrata Roy from Tihar Jail in New Delhi where he is lodged since last year.
Earlier, the court had declined to relax the conditions for interim bail of Roy like depositing Rs 5000 crore in cash and a bank guarantee of equal amount and set more tough terms including payment of the entire Rs 36,000 crore in 18 months.
Sahara's counsel had then said that the group was unable to secure the bank guarantee as the financial institution which had agreed to furnish it has backed out when SEBI insisted on fixation of the "trigger point" for encashing it.
The court had also asked the 65-year-old Roy, who has been in Tihar jail since March 4, 2014, to pay Rs 36,000 crore to the SEBI within 18 months and in nine installments from the date of release.
With Agency Inputs
