In a fresh blow to Sahara, SEBI has today cancelled Sahara’s mutual fund license saying it was not ‘fit and proper’ to carry its business. SEBI had recently cancelled Sahara’s PMS license on the same grounds.
It directed the cancellation of Sahara’s MF registration in six months from July 28 and asked the fund house to stop accepting any fresh subscriptions from existing and new investors with immediate effect.
Also, SEBI has asked Sahara MF to transfer its activities to a new sponsor and a SEBI approved AMC at the earliest.
SEBI said that Sahara AMC will have to compulsorily redeem the units allotted to its investors and credit the respective funds to its investors, without any additional cost, within a period of 30 days thereafter and wind up the operations of the AMC if the fund house fails to complete the process of transition within five months.
Sahara Mutual Fund managed AUM of Rs. 134 crore as on June 2015.
