Sahara and Sebi
Some companies in India are more equal than others. Sahara is one such case. No clue about what they do.
They can show a thumb to RBI, go to the Supreme Court over a matter, scare the regulator into taking action,….
Congrats to SEBI for passing the order – surely Sahara will say the matter is pending before the Supreme Court. Not sure what the SC will say…but if Sahara asks for say 6 months time to repay all the money, there is a very good chance that Sahara will get it. The sad part is – Sahara should not have raised the money at all – so giving them time is like telling a thief…I will give you 6 months to put the cookie back in the jar..not sure what will happen though!
The even more sad part is the kind of people who invest in Sahara argue…’10 years..and nothing has happened’….and most of them do not read the newspaper. With the kind of political clout – especially in the Bimaru states, Sahara will continue to raise money.
RBI has not categorically said anything about companies like Sahara, Peerless, etc. …but as a lay investor if you think RBI and SEBI are here to protect your interest, please think again. You need to protect yourself. Regulators are here to speak the language of the strongest player..and twiddle their thumbs when the big player is playing with your money. RBI could only ‘advise’ SBI ‘not to do teaser loans’.
It actually hurt the industry, the competitors, AND FAR MORE IMPORTANTLY US THE SHAREHOLDERS,…but the ex Chairman continues to get his indexed pension. The new Chairman comes and provides Rs. 500 crores for the teaser loans..
Just wondering whether we can RTI the internal comments of what people said about these loans…the managers are too tight lipped. The past chairman took 2000 crores off the balance sheet…and the market took of 20,000 crores off the market cap…WE ARE THE LOSERS.
RBI and SEBI are too busy for us.
Sahara, as is wont, will get away by getting a very confusing order from SC…
Sadly my views on the current bond issue is not very different…after all they even lost their mutual fund license if you remember right…
Muthu
Very well written. You are right. Ultimately we need to protect ourselves by educating ourselves.
Though much of what Robert Kiyosaki said in his subsequent books is crap or mere repetition, he was right about the importance of financial literacy and how the lack of it can ruin our lives.
subra
the best things about Kiyosaki are the concept of Rich Dad and Poor Dad, defining an asset and a liability, financial literacy and passive income.
After initial success the same theme came in different forms that is all.
Viswanath
Surprised to see a clear order from Sebi. Sahara has to return the money with immediate effect. After the way Mr. Abraham is being hounded was surprised to see an order so clear and unequivocal. Not sure who in SEBI passed the order so bravely. Of course UK Sinha has spent enough time in the M o F to know whether to pass such an order. Watch this space – it is not easy to take panga with Sahara..and take it to its logical end …..
anon
Someone had commented once here– the market shows you what your aukaat is.
Point exemplified.
With Satyam, promotor history was bright and clear.
So with Sahara.
Jitendra
Source : TimesofIndia
A Sahara India statement also said that Sebi has been vindictive and malicious towards the Sahara Group and this has been apparent from the chain of events, over the last one and a half years. “Over the last many years we have been facing a lot of oppressive, restrictive, unfair and unreasonable actions from various government authorities,” it said. It is definitely the prime duty of the government to go deep into the matter and do justice to us, said the statement.
It said investors are being ensured that there interest is protected. It also emphasized that the matter is still subjudice and there is no direction/ order of the Hon’ble courts against Sahara. The Sahara release claimed that in last 32 years of its operation, the Group has never acted against the law or the sprit of the law or earned even a rupee illegally. The release also went to add that “unjustified acts of various regulators, departments are now forcing us (Sahara) to come out with every detail…all names…at an appropriate time.”
subra
Amused. There are some companies which have such low credibility that when they say SEBI, RBI etc. are acting against them, it is difficult to believe them.
One of them is Sahara. Then there are others – do not wish to name them. I see one regulator being tormented by one such company…:-)
Samaj ne waale samaj gaye hai..na samjhe woh anadi hai 🙂