more-in Mumbai: A Securities and Exchange Board of India (SEBI) court cancelled the non-bailable arrest warrant issued by it against Sahara chief Subrata Roy after he appeared before it in a case filed by the SEBI. The court cancelled the NBWs against him and two directors of his group’s firms after they furnished bail bonds of ?2 lakh each and gave undertakings to the court that they would attend its trial proceedings against them regularly. The SEBI had filed a case against Sahara India Real Estate Corporation, Sahara Housing Investment, Subrata Roy and the directors in 2012, alleging that these companies had collected a huge amount of money from investors without listing the securities on the stock exchanges. According to the SEBI, the Sahara Group companies issued `Optional Fully Convertible Debentures’ in 2009 under the garb of private placement. This violated the SEBI Act because companies have to list such securities on the stock exchanges which they did not do. Although the complaint did not specify the amount collected from investors, it is estimated that it worked out to around ?24,000 crore. The maximum punishment for the offence under the SEBI Act is imprisonment up to 10 years. The Supreme Court had recently asked Mr. Roy, who has been released on parole, to appear before it on April 28 and had also ordered the Bombay HC’s official liquidator to auction the Sahara-owned Aamby Valley. The court adjourned the matter to May 18 for framing of charges against the accused.

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