In a minor reprieve for Sahara Mutual Fund, the Securities Appellate Tribunal (SAT) has stayed SEBI’s order against the asset management company till January 6, 2016.
In July this year, the capital market regulator SEBI had passed an order cancelling the registration of Sahara Asset Management Company.
According to the order, the company’s licence to operate a mutual fund was due to expire by the end of this month. The AMC had been directed to transfer its assets to another SEBI-approved AMC within five months of the order or redeem the fund units to investors and return their money within six months.
Sahara’s appeal against the SEBI order was due to be heard at SAT today. At the hearing, counsel for SEBI submitted a 300-page affidavit, providing new grounds for cancellation of Sahara’s licence. SAT accepted the affidavit and adjourned the hearing to next month.
