SEBI-Sahara OFCD case: Optionally fully-convertible debentures- Meaning explained
1. What is Debenture?
2. Difference between Bonds and Debentures?
3. Types of Debentures
4. What is Optionally fully-convertible debentures (OFCD)?
5. 2008-09: The game begins
6. 2011: SEBI Order
7. 2012: Supreme Court hearing
8. Order of Supreme Court
9. Government’s response
What is Debenture?
From the earlier Debt + Equity article, you know there are two (legit) ways to arrange money for starting or expanding a company
Type meaning Example
Debt: Borrow money from someone. Offer him interest rate and guarantee to repay the principal after xyz date.
Ex: Bank loans
Borrowing from friends, relatives, moneylenders
Bonds
Debentures
Equity:
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~23 million people, mostly from villages and small towns subscribed to this scheme. They invested ~24,000 crores rupees in these OFCDs of SAHARA.
SEBI : You (SAHARA) have violated rules. If OFCDs are issued then whole process should be completed within 10 working days, but here you continue collecting money from people for more than two years!
SAHARA: This fund-raising was in the form of a private placement. I.e. we offered the schemes only to our select clients, this wasn’t meant a “Public Offer”! So what’s your problem?
SEBI: Dude if this is private placement, then maximum only 50 people can invest money in it.
Here ~23 million people have parked their hard earned cash! Hell the number of investors in this case, is even more than the total number of people investing in the conventional stock-exchanges of India!
India’s biggest IPO till date was of Coal India worth Rs.15000+ crores, and you’ve made 24,000 crores out of these OFCDs! It is my responsibility to protect the investors’ in Capital market.
Hence, By the powers given to me under SEBI Act, I hereby order you to stop collecting money and refund all the money to those investors with 15% interest rate.
SAHARA
This is not right!
SEBI
Well, if you’re unhappy with my order you can go to the Securities Appellate Tribunal (SAT)
SAHARA
Pleads before SAT.
SAT
SEBI is right. You refund money to those people.
To SAHARA
We are unconvinced with your logic that OFCD schemes don’t
Providing children with a proper education and information about illegal drugs will prevent them from buying them in the future. The government should help them finding after-school activities or clubs so so they can enjoy life without “extra helps”. Infact if children’s mind is occupied by other things they are never gonna fell for drugs.
Market crashes are nearly as old as the invention of money itself. But, as Gillian Tett underlines in Fool’s Gold, “the latest financial crisis stands out due to its sheer size”. Economists estimate total losses could sum up to $2000 to $4000 billion, a number surprisingly not dissimilar to the British Gross Domestic Product. In its post-mortem, the self-inflicted disaster has commonly brought to light the question: “Did bankers, regulators and rating agencies fail to see the flaws, or did they fail to care?” Importantly, it has also created a hunt for scapegoats and quick fixes.
Finance. In order to finance our startup year, we issued stocks and borrowed loan to finance our operation and for safety in case the sales did not go well. Financing using stocks means that we are selling common or preferred stocks to individuals. In return for the money, they get some ownership over the company and its interest. This helps to bring public’s awareness about the company. If the sales suffice, we will pay the debt in the second round.
The documents are now presented for collection. Please approach the applicant for a waiver and give us your authority to negotiate by SWIFT message."
After withdraw its suing in South Jakarta District Court, then Beckkett apply stipulating cancellation executes share to Jakarta High Court. On 25 February 2005 Jakarta High Courts grants application Beckkett and cancel stipulating South Jakarta District Court, by reason is South Jakarta District Court did not have infroma to give decision. Thereby, the execute of share pawn is assumed cancelation to law. This Cancellation then strengthened with Supreme Court letter number
• Main sponsors Anjum M Saleem (Anjum Saleem was appointed as director on March 9, 2006 and bank’s chief executive on April 1, 2006) and Altaf M Saleem--used the bank’s assets illegally for personal benefits. the bank paid Rs50 million each on behalf of Altaf Saleem, sponsor of Crescent Group and Anjum Saleem, sponsor and chief executive of the bank
This case study describes the IPO of Bajaj Corp Ltd., the second largest company in the Shishir Bajaj Group of companies. It also enlists the objectives and the process of the IPO, issued on 02-08-2010. It describes the merchant bankers and underwriters involved, and discuss post-issue effects on the company.
• For each of the 10000 shares of Rs.10 each in Krishnan Ltd,2 shares in Raman
ROLE OF QIB (QUALIFIED INSTITUTIONAL BUYER) IN THE INDIAN CAPITAL MARKET FOR THE LAST 6 YEARS
Given the size of the capital raised through public offering, it could be a tedious task to raise same amount of capital in private placements.
Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). It has one of the largest networks in the country with 704 share shops in 280 cities and India’s premier online trading portal www.sharekhan.com. With their research expertise, customer commitment and superior technology, they provide investors with end-to-end solutions in investments. They provide trade execution services through multiple channels - an Internet platform, telephone and retail outlets.
Starting a new business (or finance new investments) often requires large amounts of capital, and must have them available both in the form of equity (that is, the money that the entrepreneur puts directly from his own pocket in the initiative), both in the form of capital credit.
The proponents decided that two partners contribute Php. 50,000.00 each because of their financial incapacity.
There are two types of capital that can be raised, debt and equity. Now some would think that as long as there are funds there to work with, regardless of how they were procured, the end result would be the same. However, that is not the case. Debt financing and equity financing have significant differences in how they affect the business’s bottom line and in how they are acquired. For instance, the interest paid on a business loan (option for debt financing) is tax deductible, therefore decreasing the amount of taxable income and increasing overall
USP of Madhya Pradesh- Getting land in Madhya Pradesh for investment projects is easier in comparison to other states. This is because of the fact that Madhya Pradesh has a land bank of approximately 25000 hectares. Suitable for big investors, this land can be acquired via a transparent process and developed as per individual project requirements.