Two unlisted companies of the Sahara Group issued optionally fully convertible debentures (OFCDs) to raise about ₹194 billion (US$3.8 billion), purportedly by way of private placement, without advertising to the general public. The irony was that, in this process, 30 million investors were approached, out of which 22.1 million invested.
Laws governing public issues were flouted, merely by describing the issue as a private issue and stating in the information memorandum that the issuer did not intend to get the issue listed on a stock exchange.
This column analyses the precedent-setting Securities Appellate Tribunal (SAT) order of 18 October in this regard.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
Rohit Jaiswal is a partner and Rishi Raj is an associate at Singhania & Partners, which is a full-service national law practice. The firm has offices in New Delhi, Noida, Bangalore, Hyderabad and Mumbai.
S&P House
H 186, Sector 63,
Noida 201301, India
Tel: +91 120 463 1000
Fax: +91 120 463 1001
Email: mm@singhania.in
Website: www.singhania.in
