PRESS RELEASE - SEBI

April 12, 2018
PR No. 010/2018


Order in the matter of Sahara Mutual Fund

  1. Shri Prashant Saran, Whole Time Member, Securities and Exchange Board of India (SEBI), had passed an order on July 28, 2015 directing the cancellation of the Certificate of Registration of Sahara Mutual Fund with effect from expiry of 6 months from the date of the order.
     

  2. Sahara Mutual Fund filed an appeal against the aforesaid SEBI order before the Hon’ble Securities Appellate Tribunal (SAT) and subsequently before Hon’ble Supreme Court of India. The said appeal was dismissed by the Hon’ble Supreme Court vide order dated October 23, 2017. 
     

  3. Accordingly, Sahara Mutual Fund was instructed to strictly comply with the timelines specified in the aforesaid SEBI order which became effective from October 23, 2017.
     

  4. Keeping the interests of unit holders of Sahara Tax Gain Fund, a scheme of Sahara Mutual Fund, Shri G. Mahalingam, Whole Time Member, SEBI, has passed an order dated April 11, 2018 modifying the directions issued vide the aforesaid SEBI order dated July 28, 2015 to the extent as follows:
     

    1. Sahara Mutual Fund is directed to wind up all its schemes (other than ‘Sahara Tax Gain Fund’) by April 21, 2018
       

    2. Sahara Mutual Fund is permitted to continue to run its ‘Sahara Tax Gain Fund’ till July 27, 2018. However, Sahara MF shall not accept any new investor under ‘Sahara Tax Gain Fund.’
       

    3. Sahara Mutual Fund is directed to compulsorily redeem each investment in ‘Sahara Tax Gain Fund’ as and when the lock in period expires.
       

    4. Sahara Mutual Fund is granted time till August 27, 2018 to complete winding up of the ‘Sahara Tax Gain Fund’. 
       

    5. Sahara Mutual Fund is directed to surrender the certificate of registration to SEBI by August 27, 2018. 
       

    6. The Trustees of Sahara Mutual Fund and the Registrar and Transfer Agent, namely M/s Karvy Computer share Private Limited are directed to ensure that contact details and the bank details of all the investors of ‘Sahara Tax Gain Fund’ are updated so that redemption proceeds can be sent to the investors without any delay
       

    7. The trustees of Sahara MF are directed to file a monthly report to SEBI updating the status of the redemption process from April 2018 till the winding up of all Schemes. 

 

For full copy of order against Sahara Mutual Fund, Sahara Asset Management CO.PAT.LTD., Mr.S.P.Srivastava, Mr.Sanjiv Kapoor and Mr.M.R.Siddiqui click here.