SEBI cancelled Certificate of Registration of Sahara Mutual Fund

Shri Prashant Saran,Whole Time Member of Securities and Exchange Board of India(SEBI),has an order directing the cancellation of the Certificate of Registration of Sahara Mutual Fund on JULY 28,2015.

• Considering the interests of unit holders, the order of cancellation of the Certificate of Registration of the Sahara Mutual Fund shall be effective on expiry of 6 months from the date of the said order.
• The main reason for cancellation of the certificate of registration is that the fund house Sahara Mutual Fund along with Sahara AMC and Sahara Sponsor were found to be no longer “fit and proper” persons to carry out the business of Mutual Fund.
• SEBI has ordered the fund house to not to accept any fresh subscription from investors and directed to transfer the business to a new fund house.
• Failure of Sahara Mutual Fund to complete the process of transition as mentioned within a period of five months from the date of this order, then Sahara Mutual Fund should compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of thirty days thereafter and wind up the operations of the Mutual Fund.
• On expiry of six months from the date of this order, Sahara Mutual Fund shall return the certificate of registration to SEBI.
• Sahara Mutual Fund had total assets under management of Rs.134.29 crore as on 30 June across 24 equity funds, 12 debt funds and two hybrid funds.

ABOUT SEBI:

• Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.
• Established in 1988 and gave the statutory powers through SEBI Act, 1992 on April 12, 1992.
• SEBI has its headquarters at the business district of Bandra Kurla Complex in Mumbai.
• SEBI is managed by its members,
  The chairman who is nominated by Union Government of India.
  Two members, Officers from Union Finance Ministry.
  One member from the Reserve Bank of India.
  The remaining five members are nominated by Union Government of India; out of them at least three shall be whole-time members.