 Sahara India Real Estate Corporation (SIREC)

and Sahara Housing Investment Corporation

(SHIC) were raising large sums of money –
Thousands of Crores from investors by issuing
Optionally Fully Convertible Debentures to the
public.
 Sahara borrowed over 24000 crores from the
2.25 crores of public by issuing Optionally
Fully Convertible Debentures (OFCD) which at
a later stage is t the option of investor to
convert it into equity shares.
 Approval not taken from SEBI before raising
funds from more than 50 investors.
 Fund raising process not completed within 6
weeks.
 List of investors, their addresses and other
information were not readily available.
 OFCD is hybrid instrument and does not falls
under SEBI’s Jurisdiction
 Issue of OFCD was through Private placement
and not through public issue.
 Started Investigation considering the case of
Money laundering
 SEBI asked the two companies –Sahara India
Real Estate Corporation (SIREC) and Sahara
Housing Investment Corporation (SHIC) to
stop raising money through an order dated 24
November 2010
 Ordered to pay all investors the amount
borrowed along with interest @15%.