Can Sebi force company to get listed, asks HC

TIMES NEWS NETWORK

Fixing January 12 as the next date of hearing, the bench of Justice DP Singh and Justice VK Dixit asked the Sahara India Group to furnish necessary information to the Registrar of Companies (RoC), Kanpur, and directed the Central government and RoC to submit a status report after taking into consideration the interest of shareholders.

The company could now continue to take deposits as per consent granted by the RoC. On December 1, the bench had reserved its order, saying that the Central government and Sebi would not coerce the Sahara Group. On Monday, the court said it would adjudicate whether Sebi had got a right to interfere with affairs of unlisted company.    

 The court further said that the question whether Sebi could force a company to get listed also required consideration.

“Prima facie, since the petitioners are not a listed company and the matter is under investigation by the Central government, the case for interim relief is made out,” observed the bench, admitting the writ petition of Sahara for hearing.

After Sebi issued its November 24 ban order, Sahara had challenged it in the HC. The company based its case on the sole ground that the RoC had sought the said information and the matter was pending with it. Pending inquiry before the RoC, Sebi could not intervene into the issue and its action was without jurisdiction and mala fide, it had maintained. It also pleaded that since it was not a listed company therefore Sebi did not have the right to seek information from it.

Go to Link - http://timesofindia.indiatimes.com/business/india-business/HC-stays-Sebi-ban-on-Sahara/articleshow/7096712.cms