Sebi bars Subrata Roy from securities mkt

The SEBI on Thursday directed two Sahara group firms,its founder Subrata Roy and two directors from the firms,to immediately refund money collected through optionally fully convertible debentures (OFCDs) with annual interest of 15%. The Securities and Exchange Board of India restrained Sahara Commodity Services Corp and Sahara Housing Investment from raising funds from the securities market and and also barred Sahara’s founder and the directors from associating with any listed company or any firm which plans to raise money from the public till the payments are made. SEBI’s order will come into effect after the Supreme Court ratifies it. SEBI had said in November that the two Sahara firms were “raising sizeable amounts of money from the public without conforming to the prudent disclosure and other investors protection norms which govern public issues.” “...it seems that under the guise of OFCDs,the two companies are extensively taking up parabanking activities and running deposit schemes,” the regulator said. A Sahara group representative did not comment.