The Securities and Exchange Board of India (Sebi) cancelled the fund management licence of Sahara Asset Management Company in a fresh blow to the crisis-hit Sahara Group and its founder Subrata Roy, who is engaged in a long-drawn battle with the market regulator.
Sahara AMC was initially granted a certificate of registration as portfolio manager by Sebi for three years starting October 16, 2006. The licence was later renewed till 2012.
The market regulator has now rejected Sahara’s application for further renewal of the licence, stating that the firm doesn’t comply with its “fit and proper” norms.
“Keeping Sahara AMC in the mainstream market may cause prejudice to the interests of investors and the safety and integrity of the securities market,” S Raman, whole-time member of Sebi, said in the order.
Sebi has given Sahara AMC 30 days from the date of cancellation of the certificate of registration to transfer its business to another company registered with the regulator, or it must allow its investors to redeem assets.
Sahara did not respond to a query sent by HT.