New Delhi, 13 June (H.S.): The Securities and Exchange Board of India (SEBI) has approached the Supreme Court, challenging portions of a recent order by the Securities Appellate Tribunal (SAT) that granted relief to four managers and the company secretary of Sahara India Commercial Corporation Ltd (SICCL) in the long-running case related to the issuance of Optionally Fully Convertible Debentures (OFCDs).

The matter is scheduled to be heard on June 18 by a vacation bench comprising Chief Justice Surya Kant and Justice V. Mohana.

SEBI's appeal focuses on the tribunal's decision to provide relief to certain company officials while upholding regulatory action against SICCL itself. The market regulator has sought a review of that part of the order, arguing that accountability should extend beyond the company to individuals who were involved in the issuance process.

The dispute stems from allegations that SICCL raised funds from a large number of investors through OFCDs without complying with regulatory requirements governing public issues of securities. SEBI has consistently maintained that the fundraising exercise violated securities laws and investor protection norms.

On March 9, SAT upheld SEBI's action against SICCL and dismissed appeals filed by the company and its directors. However, the tribunal granted relief to four managers and the company secretary, leading SEBI to challenge that aspect of the ruling before the apex court.

The OFCD controversy became one of India's most significant securities market cases, attracting regulatory and judicial scrutiny over the manner in which funds were mobilized from investors. The dispute has led to a series of legal proceedings over the years concerning compliance with securities regulations, investor refunds, and the responsibilities of company officials.

SEBI's latest move before the Supreme Court is aimed at securing clarity on the extent of liability that can be imposed on managerial personnel and compliance officers in cases involving alleged violations of securities laws.

The Supreme Court's hearing on June 18 is expected to determine whether the relief granted to the Sahara executives should stand or whether further proceedings are warranted.

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Hindusthan Samachar / Jun Sarkar