The Supreme Court on Monday directed Sahara India Real Estate to furnish the format of the application for an OFCD scheme and a list of accredited agents raising money on its behalf after the firm claimed it was not liable if investors provided false address and other details.

A three-judge bench headed by Chief Justice S H Kapadia directed the Sahara Group firm to submit the format of the investment scheme and the list of its agents by Thursday.

“The petitioner is directed to furnish a format of its investor form on which they are supposed to apply for OFCDs (Optionally Fully Convertible Debentures). They would also give a list of accredited agents,” the bench said.

The issue pertains to market regulator Sebi’s demand that Sahara India Real Estate Corporation share details of the investors in the OFCD scheme.

Sahara Group had opposed Sebi’s demand.

The apex court’s direction came after Senior Advocate Soli Sorabjee appearing for Sahara Group, informed the Court that the investors have given wrong details regarding their residential address and other necessary information and the company cannot be liable for that.

However, this was opposed by the counsel representing Sebi, submitting that Sahara still has not given the required information regarding the investors that have invested in its schemes.

The bench also said that it will go into the concept of OFCD and which law of the country governs it.

“You have to explain the concept of OFCD and how the investors are coming and investing in it,” the bench said.

On 2nd May, the apex court had adjourned the matter for a week after the group’s investment arm, Sahara India Real Estate Corporation, sought time to file documents.

The High Court had dismissed the Sahara Group’s plea to vacate its earlier order, which allowed Sebi to collect information on two of its OFCD schemes.

On 29th April, the court said the group had not complied with its order to provide the required information for Sebi.

Two entities of Sahara Group — Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd — were raising money from investors through OFCDs.

Market regulator Sebi had asked Sahara to share investor details, which was opposed by Sahara.

Ready to revisit verdict on NSDL role in IPO scam: Sebi to SC

Market regulator Sebi on Monday informed the Supreme Court that its board has decided to reconsider its earlier clean chit to depository NSDL in the years-old IPO scam.

Replying to a notice from the apex court, Attorney General Goolam E Vahanvati on Monday informed that the market regulator’s board decided in a meeting held on 26th April to reconsider a special committee’s report, which had found NSDL to be at fault in the IPO scam.

Sebi said its board has decided to reconsider the report submitted by the Committee with a view to accept it.

The board had given a clean chit to NSDL in the issue, despite a special committee to probe the matter finding the depository to be at fault in the case.

The bench comprising justices RV Raveendran and AK Patnaik directed to list the case in July, saying that it would see the outcome of the Sebi decision.

Sebi in its affidavit said “the board of Sebi pursuant to the (Supreme Court) Order of 28th March, 2011, had reconsidered the order of the Special Committee dated 4th December, 2008, at its meeting held on 26th April, 2011.”

“After detailed deliberations and keeping in view the spirit of the observations of the SC, the board decided to reconsider the decision… it would reconsider the report of the Committee with a view to accepting the same,” it said in its affidavit.

The Sebi board meeting on 26th April  was called exclusively to finalise its reply to a notice from the apex court.

The Supreme Court on 28th March had asked Sebi to reply on whether it would revisit its decision to give a clean chit to NSDL (National Securities Depository Ltd) in a major scam related to share allotment irregularities in various initial public offers (IPOs) during 2003-2006 period.

The court had asked Sebi’s board to pass an appropriate resolution and place the same before the court.

NSDL was given a clean chit last year by Sebi, when its chairman was C B Bhave, who earlier headed NSDL.

Bhave had recused himself from Sebi board meeting in February 2010, when NSDL matter was discussed, as he had previously been head of the depository.

Sebi’s board had given NSDL the clean chit after setting aside the order of the special committee, which had found NSDL to be at fault in the matter.

The issue reached Supreme Court after a special leave petition was filed in the apex court in this regard.

The leading national depository, which enables holding of shares and other securities in demat or electronic format, came under the scanner in 2006 after a probe into IPO scam