SEBI Cancels Sahara’s Mutual Fund Licence

28 July, Mumbai

The Securities and Exchange Board of India has cancelled Sahara asset Management Company’s license today. The market regulator in its order Tuesday said that the company is not fit and proper entity to carry out the business of mutual fund.

It said, Sahara’s fund management license would stand cancelled after 60 days from the date of the order.

It has directed Sahara AMC not to take any new subscription from the investors including existing investors in systematic investment plans and also not to levy any penalties on the investors for not depositing the installments.

The regulator has also asked the fund house to transfer its activities to a new sponsor and a Sebi approved asset Management Company at the earliest.

Sahara Group is involved in a legal tussle with the market regulator over optionally fully convertible debentures that were ruled to be illegal by Sebi and directing the group to refund the money collected to investors along with interest. The matter is currently before the Supreme Court.